Jun 21, 2024, 12:42 AM
Jun 19, 2024, 9:35 AM
Bank of England's Decision on Interest Rates Prior to Elections
Subjective
- Bank of England accused of 'penalising the young' by keeping mortgage rates high.
- Rishi Sunak unlikely to receive rate cut support before the upcoming election.
- Economic triumph claimed by Rishi Sunak as inflation falls to 2%.
Andrew Bailey, governor of the Bank of England, played a key role in controlling inflation by raising interest rates to 5.25%. Chancellor Jeremy Hunt and Prime Minister Rishi Sunak also contributed to returning inflation to the 2% target. Sunak promised tax cuts as inflation fell, with plans for £17.2 billion in cuts annually. Despite falling inflation, the Bank of England is unlikely to lower rates at their upcoming meeting. Food prices have risen significantly, with core inflation at 3.5% in May. Services costs are also increasing, fueling concerns about persistent price pressures. Wages are growing fast, setting the backdrop for the inflation figures.
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