He said: “We really understand how difficult it is for millions of households at the moment and that’s why we’re investing £500m and doing everything we can to keep our prices low, especially on the products that customers buy most often.” “The pressure on household budgets will only intensify in the rest of the year and I am very clear that doing the right thing for our customers and colleagues will remain at the top of our agenda.” The report states: “Following Russia’s illegal invasion of Ukraine, global inflationary pressures have intensified sharply. This largely reflects sharp increases in energy and other commodity prices that have exacerbated inflationary pressures stemming from the pandemic and further disrupted supply chains. “Real household incomes and the profit margins of some businesses have fallen as a result.” The report says that if food and energy prices continue to rise, which seems likely as the war in Ukraine shows no end, the economic outlook could deteriorate further. It read: “Developments related to the Russian invasion of Ukraine are a key factor that will affect both the global outlook and the UK outlook, particularly if energy and food prices rise further. “Stronger or more persistent inflationary pressures than currently expected could lead to: weaker global economic growth, further sharp tightening of global financial conditions and the potential for further volatility and stress in financial markets.” This would likely “add to pressures” due to the rising cost of living already faced by households and businesses. READ MORE: Meghan and Harry warn ‘company wins’ if new Oprah chat goes ahead Capital ratios are the amount of capital a bank holds in reserve to protect itself in the event of a crisis that could affect its riskier dispositions. ITV political editor Robert Preston said on Twitter: “The Bank of England is warning of a significant deterioration in the economy and risks to banks. He wants banks to continue to finance creditworthy businesses and individuals, but recognizes the risk of worsening the recession by tightening credit.” The Bank of England has warned that small businesses are at risk as they have taken on more debt since the coronavirus pandemic and had lower cash reserves. The news comes as inflation is estimated to reach 11% by October this year. Energy and food prices are expected to continue to rise, particularly as the war in Ukraine continues with no end in sight.
