Recession: the price Britain will pay to control inflation

Analysis: As the Bank of England raises interest rates the message is clear - the 1970s are back

• Business live: Bank raises interest rates to 1%

Unemployment rising. Inflation above 10%. Energy prices soaring. Living standards squeezed. The message from the Bank of England was crystal clear: the 1970s are back.

The word stagflation was not to be found in the 100-plus pages of Threadneedle Street's monetary policy report. Yet a period of weak growth and rapidly rising prices is precisely what the Bank says is in store for the UK. The current post-lockdown bounce will be short-lived and, in a real blast from the past, the economy will be driven into recession to bring inflation under control.