Brexit has downgraded Britain, made the sterling risky

The situation has led some influential Tories to call for a return to the EU — but that’ll be easier said than done.

British Prime Minister Boris Johnson (Image: AP/Liam McBurney/Pool)

The Bank of England is now between a rock and a hard place: inflation has topped 9% — way above the 2% target mandated by the Treasury. In response, its rulebook says it should lift interest rates — on top of the four rate rises announced since December — to damp down growth.

Yet growth has already stalled: the economy stagnated in February, shrank slightly in March and — with families cutting back on luxuries to pay for food and energy — looks set to slow sharply over the summer.

With much of the cost-of-living surge driven by supply constraints — of gas, food, silicon chips and skilled workers — raising interest rates could knock the economy into a recession, even as the cost-of-living crisis carries on.

Read more about the economic toll Brexit has taken.

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Place of originBrexit has downgraded Britain, made the sterling risky

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