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Happy Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:
- The Bank of England is being warned it may have to hike interest rates higher than investors expect, even as the risk of recession mounts, in part because it has lost much of its power to control inflation
- The decades-long era of cheap food in Britain may be coming to an abrupt end
- Read Stephanie Flanders’s thoughts on UK Chancellor of the Exchequer Rishi Sunak’s hard choices in the UK’s fight against stagflation
- Sunak said said the Brexit settlement in Northern Ireland is causing economic and political harm and called on the European Union to be flexible
- Sunak said he was unable to increase welfare benefits this year to protect the most vulnerable from the cost of living crisis because the government’s antique computer system would not let him
- Fed Chair Jerome Powell reaffirmed that the central bank is likely to raise rates by a half percentage point at each of its next two meetings, while leaving open the possibility it could do more
- The world economy will essentially flatline this year as Europe falls into recession, China slows and US financial conditions tighten
- From 2000 to 2019, median incomes in poorer nations rose faster than in wealthy ones
- Polish central bank Governor Adam Glapinski won parliamentary approval for a second, six-year term despite public anger over surging inflation and rapidly rising interest rates
- Some European Union nations are saying it may be time to consider delaying a push to ban Russian oil
- Estonian Prime Minister Kaja Kallas, a Baltic leader who has been an outspoken antagonist of Vladimir Putin, narrowly avoided a government collapse
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