Today the Bank of England announced raised interest rates by 0.25% - from 0.75% to 1% - in order to counteract inflation, which is set to reach 10% this year.
Responding to the news, Gareth said:
"The combination of the pandemic and the war in Ukraine has led to global supply-chain shortages and an inflationary shock.
In response, the Government has announced several measures of support with the cost of living, worth over £20 billion. These include a £150 council tax rebate rolled out this month, a cut to fuel duty, and a £200 smoothing rebate on energy bills.
Thankfully, the jobs market remains robust, with unemployment at pre-pandemic levels and outperforming the Eurozone average.
The Bank of England’s announcement today underlines the importance of sustainable public finances and steady economic stewardship, with higher interest rates increasing the cost of our national debt.
The key focuses of the Government should continue to be supporting the vulnerable, keeping employment buoyant, and stimulating growth without exacerbating inflation by investing in skills and infrastructure."
