Outlook for economy has ‘deteriorated markedly’ due to soaring prices, Bank of England warns

Households and lenders can weather storm caused by energy price spike, says Bank

Governor of the Bank of England Andrew Bailey (Frank Augstein/PA) (PA Wire)

Britain's economic outlook has "deteriorated materially” thanks to soaring prices stoked by Russia's invasion of Ukraine, the Bank of England has said.

In its latest health check on the UK financial system, the Bank noted sharp spikes in the price of gas and other commodities.

This will put households under more strain and leave them more exposed to further shocks in the coming months, the Bank said.