British Prime Minister, Rishi Sunak, confirmed this Sunday that his government has a “plan that will work” to tackle the UK’s soaring inflation – estimated at 8.7% – and stressed his “full support” for the Bank of England. Raising interest rates to 5%.
In an interview with the BBC, Chief Tori They were quizzed this Sunday about the latest measure agreed by the Monetary Policy Committee of the English issuer bank, which announced last Thursday a half-point increase in interest rates to their highest level since 2008. “I think the Bank of England, including the Governor (Andrew) has adopted Bailey) over a long period of time on the fact that inflation has been properly managed and that citizens should have confidence that it will come down to the target (from 2%).”
Reiterating that the bank has its “full support”, Sunak said there was “no alternative to low inflation” which is at “historically high levels”, according to the Office for National Statistics (ONS).
The CEO admitted that the decision to raise interest rates was “difficult” and “very unpopular” although he stressed that “it is the right thing for the country in the long run”. “I didn’t say it wouldn’t be difficult, but I want to give the citizens assurances that we have a plan, that the plan will work and we will overcome that,” Sunak said, stressing that “interest rates are not.” as a result of high inflation.
In this sense, the conservative leader also stressed that “it must be very clear that what harms citizens, what causes challenges in their daily lives and in their budgets is inflation.” After the latest economic indicators, many analysts expected rates to reach 6% at the beginning of 2024 – which would mean their highest peak in two decades – which in turn raised concerns about the consequences of the high cost of mortgages in the country. this country.
The UK’s Institute for Fiscal Studies (IFS), an influential think tank in the country, has warned that an increase in interest rates could cause the nearly 1.4 million Britons with a mortgage to lose 20% of their available economic capacity.
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