Bank of England chief says recession still ‘likely’ – but welcomes ‘clarity’ on energy bills

‘It’s important that there is clear way forward on policy’, says governor Andrew Bailey on Liz Truss plan

The governor of the Bank of England has said he welcomed the prospect of a “clear way forward” to tackle soaring energy bills from Liz Truss.

The expected announcement from the new prime minister on energy bills would reassure markets, said Andrew Bailey – but warned that recession remained the “most likely outcome” for the UK economy.

Ms Truss is working to finalise a multi-billion-pound package to freeze household and businesses’ gas and electricity bills, with some estimates that it could cost over £100bn.