The comments skewered the pound - already under severe pressure after recent turmoil in Westminster - and sent it tumbling against the dollar and euro, while it struggled to bounce back in Asia. It also warned that the UK economy faced a prolonged recession - possibly into 2024 - as it battles high prices caused by the Ukraine war. The Bank of England became the latest on Thursday when it lifted borrowing costs by their most in 33 years - and to a 14-year high - but said they would not go as high as markets had priced in. The decision came as other central banks have signalled they will tone down their hawkishness, even in the face of decades- or record-high inflation. The governor told a news conference that while the size of increases would likely come down, they would top out at a higher level than expected, dealing a blow to talk of an end soon. Fed boss Jerome Powell's pushback against expectations of a softer approach to monetary tightening sent shivers through trading floors and ramped up fears of a global recession.
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