UK faces 'triple whammy': Bank of England economist

The UK economy faces a "triple whammy" of higher inflation, lower growth, and rising unemployment, the Bank of England's chief economist has warned.

In an interview with the Independent, Spencer Dale said he does not expect inflation to return to its 2% target until the end of next year, a year later than the Bank had hoped. This is largely because of the hike in VAT to 20% revealed in George Osborne's emergency Budget. Dale says although the Budget has helped to avert the risk of a sovereign debt crisis in the UK and a rise in interest rates, the austerity measures will lead to low growth in future, the Independent reports. The economist says unemployment may rise in the coming months, while demand in the economy will remain "inc...