The basic idea is that the consistent ratcheting up of workers' pay to match inflation and cost of living increases leads to firms raising prices to protect their profit margins.

Bank of England Governor Andrew Bailey said on Monday that he still thought that inflation was likely to fall sharply next year, broadly in line with forecasts the British central bank presented in early May.

Bank of England chief economist Huw Pill warned on Wednesday that Britain's economy would slow to a crawl over the next 12 months and repeated his preference for a "steady-handed" approach to raising interest rates.

Britain racked up a record shortfall in its current account in early 2022, in part due to the soaring cost of its fuel imports, according to data that officials cautioned could be revised.

Britain's economy is struggling under the strain of two major risks in the form of double-digit inflation and a possible recession, leaving the Bank of England in a dilemma about how much further it should raise interest rates.

British finance minister Rishi Sunak has toughened his language towards Bank of England Governor Andrew Bailey, a reflection of the political pressure piling on them both as inflation surges towards double digits.

Central banks across Europe raised interest rates on Thursday, some by amounts that shocked markets, and hinted at even higher borrowing costs to come to tame soaring inflation that is eroding savings and squeezing corporate profits.

The Bank of England said on Friday it was satisfied lenders had taken steps to ensure they were no longer "too big to fail" in any future crisis, though it found shortcomings at three major banks.

As a challenge to economic theory, workers are facing cuts in their real pay with seemingly no prospect of wages catching up with headline inflation. This is despite the fact that unemployment is low.

Before the pandemic, Britain enjoyed steady labour force growth and high rates of participation.

Total employment remained below its pre-pandemic level, with job vacancies at a record-high of almost 1.3 million at the end of April.

Global heating is virtually certain to pass 1.5C, probably within a decade

A senior diplomat told AFP that "most of the net-zero pledges are void of content".

BOE governor Andrew Bailey said central bankers face a "very difficult balancing act"

BoE governor Andrew Bailey believes that recovery is flattening as a result of the pandemic and global supply chain bottlenecks.

Economists worry that surging global inflation will continue to weigh on the world's economic recovery.

The Consumer Prices Index hit an above-target 2.5 percent in June as Britain lifted virus curbs.

Financial services -- a key driver of the British economy -- were largely omitted from the last-minute Brexit trade deal agreed between London and Brussels in late December.

Export prices are reportedly sliding because of paperwork delays that have sparked severe holdups.

British Prime Minister Boris Johnson appears eager to agree an acceptable alignment deal -- but does not want identical EU regulatory rules for political reasons.

The pound rallied on the update, which included news that the BoE held its main interest rate at a record-low 0.1 percent.

The British central bank has been at the forefront of economic fire-fighting over this year's deadly COVID-19 emergency.

Britain's economy shrank in the first quarter at the fastest pace since the global financial crisis as the country went into coronavirus lockdown.

Bailey steps up from his role as head of the UK's financial regulator where he faced strong criticism over his role overseeing investment scandals in Britain.

Finance minister Rishi Sunak will present the budget in parliament around 1230 GMT.

On eve of Brexit, there is a strong possibility that the Bank of England will later Thursday announce its first interest rate cut in more than three years.

BoE governor, Mark Carney will handover on January 31 after six years in the role.

British Prime Minister Boris Johnson wants to embrace Brexit and kick-start growth in Britain's stalling economy.

The government's own forecasts show Britain potentially running out of food and vital medicine.

Facebook is trying to get outside backers for its cryptocurrency, dubbed GlobalCoin, in an attempt to build trust and insulate it from the wild swings in the crypto space.