Budget 2021: Rishi Sunak's plans to ease cost of living crisis are set to be derailed by rising interest rates

Asia's Tech News Daily

UK interest rates are set to start climbing again in the near future, the head of the Bank of England has signalled in a move that will dismay Rishi Sunak.

The Chancellor is currently putting the final touches to his Budget and spending review which will be unveiled in Parliament next week.

He has made it clear one of his main concerns as the British economy emerges from the Covid-induced recession is that inflation could spike – raising the cost of living and pushing the Bank to increase interest rates.

Andrew Bailey, the Bank’s Governor, said that the rise in global energy prices made it more likely that inflation would remain above the 2 per cent target for a prolonged period of time.

He told a gathering of global finance ministers: “Monetary policy cannot solve supply-side problems – but it will have to act and must do so if we see a risk, particularly to medium-term inflation and to medium-term inflation expectations. And that’s why we at the Bank of England have signalled, and this is another such signal, that we will have to act.”

The Bank’s monetary policy committee is considered likely to raise rates from their current record low of 0.1 per cent at a meeting in either November or December. It would be the first rate rise since 2018, after the level was cut twice in March last year following the start of the coronavirus crisis.

Mr Sunak has said that he is intensely worried about a string of rate hikes pushing up the cost of interest on the national debt – although economists point out that it has never been so cheap to service the debt. He is likely to emphasise at the Budget that continued spending restraint, and possibly extra tax rises, will be needed to reduce the deficit – rather than adding stimulus to help families with the cost of living.

An increase in interest rates would also push up the cost of servicing mortgages, including for millions of homeowners who have never known a base rate higher than 0.75 per cent, which could worsen the living standards squeeze.

Mr Bailey’s intervention could hardly have come at a more awkward time for the Chancellor.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

CNN vows to ‘review' documents showing Chris Cuomo aided brother during sexual misconduct scandal

© Getty Images File: The additional transcripts and video testimonies released by the NY Attorney General reveal the extent to which CNN host Chris Cuomo aided his brother, Andrew Cuomo ... Read more »

Radhe Shyam: Netizens connect Prabhas' Aashiqui Aa Gayi to Anushka Shetty and it's the most endearing thing on the internet today

© Provided by BollywoodLife.com Radhe Shyam is all set to release early next year. And the makers are leaving no stone unturned in the promotion of the period romance drama ... Read more »

Elliot Page radiates gender euphoria in shirtless selfie and fans are in awe

Elliot Page gave us trans joy as he posted a confident, shirtless photo of himself on Instagram. “Oh good my new phone works” the 34-year-old actor jokingly captioned the photo, ... Read more »

Number of Omicron variant cases in Scotland rises to nine

Three new cases of the Omicron variant of coronavirus have been identified in Scotland, bringing the total to nine. Health Secretary Humza Yousaf said there are now five cases in ... Read more »

Dow Jones Futures Dive As Moderna CEO Predicts Less Effective Vaccines For Omicron Variant

Dow Jones Futures Dive As Moderna CEO Predicts Less Effective Vaccines For Omicron Variant Dow Jones futures dived 400 points early Tuesday, as the Moderna CEO predicted existing vaccines will ... Read more »

PICS: Vishak Nair gets engaged to Jayapria Nair; Introduces his fiancee in an adorable way

© Provided by Pinkvilla Malayalam actor Vishak Nair got engaged to his ladylove Jayapria Nair a few days ago. Reportedly, the couple got engaged in traditional Hindu tradition. While Vishak ... Read more »

Ranbir Kapoor 'kicks' Alia Bhatt's lehenga in THIS viral video, netizens call it 'jabardasti wala love' - Watch

© Provided by Zee News New Delhi: One of the most adored couples in Bollywood Ranbir Kapoor and Alia Bhatt are going strong and buzz is strong about them getting ... Read more »

Carlos Sainz comments up pressure on Lewis Hamilton and Max Verstappen for Saudi Arabia GP

Carlos Sainz has fired a stark warning to title rivals Max Verstappen and Lewis Hamilton ahead of this weekend’s Grand Prix in Saudi Arabia. Verstappen leads the British driver by ... Read more »

State pension fury as Johnson 'callously pushing hundreds of thousands into poverty'

The Department for Work and Pensions (DWP) has confirmed that the state pension will rise by 3.1 percent after an annual review. When the triple lock was active, many recipients ... Read more »

Heathrow and Gatwick: Latest travel restrictions for Ibiza, Tenerife, Mallorca, Corfu, Madeira and Crete

It’s that time of year when temperatures plummet across the capital during the run-up to Christmas. A number of Londoners may be keen to try and jet away somewhere warmer ... Read more »

Netherlands travel rules: Can I visit Amsterdam and what are the restrictions for tourists?

The Netherlands is currently seeing a surge in Covid cases, leading to the government announcing renewed domestic restrictions last Friday. © Getty Images/iStockphoto Amsterdam is a popular winter city break ... Read more »

High cholesterol - six crucial warning signs of dangerously high cholesterol levels

Cholesterol is a naturally occurring substance produced in the liver though it can also be consumed through the food we eat. These lipoproteins are essential to a healthy diet but ... Read more »

Man City star sends 'crucial' warning to Jack Grealish on eve of Aston Villa return

Jack Grealish has been warned that he cannot expect to come back from injury and go straight into Manchester City’s starting lineup. Grealish ‘s own team-mate, Ilkay Gundogan, has said ... Read more »

Police call for information after 7 suspected illegal miners killed in Germiston

© SAPS. FILE: JOHANNESBURG – Police are still trying to find who is responsible for the killing of seven people in the Makause informal settlement in Germiston. The bodies were ... Read more »

Case against alleged CT cop killers postponed

© https://www.123rf.com/photo_45327322_the-gavel-of-a-judge-in-court.html © andreyuu/123rf.com CAPE TOWN – The case against two men implicated in the murder of a Cape Town police officer has been postponed to Monday for a bail ... Read more »

Leaked papers link China leaders to Uyghur crackdown

© Getty Images Chinese President Xi Jinping (L) and Premier Li Keqiang (R) were among top government figures named in the leaked documents A newly published cache of documents directly ... Read more »

Martial Law martyr's daughter warns vs. suffering in silence

— Silence among families of Martial Law victims has allowed personalities associated with the late dictator Ferdinand Marcos to regroup, a daughter of one Martial Law victim said on Tuesday. ... Read more »

Rezept-Ideen für den Winter: So wird Ofenkäse noch unwiderstehlicher

© iStock Rezepte für den Winter: So wird Ofenkäse noch besser iStock Die Haltbarkeit von Liebesbeziehungen soll sich jetzt berechnen lassen. Die Formel dafür haben der Oxford-Professor und Mathematiker James Murray und ... Read more »

Video: Terrifying moment sex-crazed elephant overturns safari jeep at South African reserve before screaming passengers escape the vehicle and run for their lives 

Read more »

Video: UNBELIEVABLE footage shows Aussie rapper hurled to the ground and kneed in the head by police for not wearing a mask while Xmas shopping with his MUM 

Read more »

Video: Charles acknowledges `atrocity of slavery´ as Barbados becomes a republic

Read more »

KL Rahul, Rashid Khan Could Get Banned from IPL 2022 After Lucknow Approach Duo: Reports

© Provided by News18 KL Rahul, Rashid Khan Could Get Banned from IPL 2022 After Lucknow Approach Duo: Reports All the eight Indian Premier League franchises on Tuesday, November 30, ... Read more »

Coronavirus digest: Moderna chief warns omicron could dodge vaccines

© Provided by dw.com Immunity gained from vaccine shots already administered may be compromised, the says Moderna’s CEO Moderna’s chief executive predicts that existing vaccines could be be less effective ... Read more »

Philippines: Duterte's pick for successor quits presidential race

© Provided by dw.com President Rodrigo Duterte is not eligible for another term Philippine Senator Christopher “Bong” Go, President Rodrigo Duterte’s preferred successor for the presidential election in May 2022, ... Read more »

Miss Universe contestant tests positive for Covid-19

© Provided by Independent Online (IOL) A contestant set to participate in the 2021 Miss Universe competition in Israel tested positive for the novel coronavirus just 13 days before the ... Read more »

Not Just Kapil Dev, '83' Trailer Also Features A Character Based On Young Sachin Tendulkar

© Provided by MensXP The trailer of filmmaker Kabir Khan’s 83 has caught everyone’s attention on social media. Starring Ranveer Singh, Deepika Padukone and Pankaj Tripathi among others, the trailer ... Read more »

BTS`s Jin turns into Squid Game doll at Permission to Dance on Stage

© Provided by Mid-Day K-pop group BTS member Jin who rings in his birthday on December 4 never fails to surprise fans with his new look at each concert. This ... Read more »

‘My dad retired from railways, so trains were something I could relate to`

© Provided by Mid-Day From enjoying a gola at Juhu beach with his wife, to a meal at Mainland China with his kids, here’s everything that made UP boy Sudhanshu ... Read more »

Ranveer Singh as Kapil Dev, Tahir Raj Bhasin as Sunil Gavaskar: Check out Kabir Khan's recreated team in 83

© Provided by Pinkvilla Kabir Khan’s much awaited 83 trailer is here and it has already taken social media by storm. The trailer perfectly encapsulates the underdog journey of team ... Read more »

Katrina Kaif, Vicky Kaushal to have a Mumbai reception for industry friends after the wedding?

© Provided by Pinkvilla Actors Katrina Kaif and Vicky Kaushal are all set to tie the knot in Rajasthan on December 9 and amid all the buzz about their nuptials, ... Read more »

Rakhi Sawant's Husband Not A Businessman? New Reports Suggest His Real Identity

Entertainment queen Rakhi Sawant and her husband Ritesh entered the Bigg Boss house as wild card contestants. It was a big surprise for Rakhi Sawant fans as we finally got ... Read more »

Newcastle told to avoid Liverpool man in January as pundit points to Howe concern

Pundit Kevin Phillips reckons Newcastle should move their transfer focus away from Liverpool striker Divock Origi. © PA Images Takumi Minamino, Divock Origi, Curtis Jones Liverpool The Belgian has been ... Read more »

Barcelona fire kills family of 4, including 2 children

On Location: November 29, 2021 Catch up on the developing stories making headlines.ABCNews.com MADRID — A fire in part of a building occupied by squatters in central Barcelona killed four ... Read more »

Black artist Josephine Baker honored at France's Pantheon

The Associated PressFILE – Charlie Chaplin congratulates entertainer Josephine Baker after her performance at the charity gala “Le Bal des Petits Lits Blancs,” at the Moulin Rouge in Paris, on ... Read more »

Bielsa must unleash Leeds' £16.5k-p/w "wrecking ball", he can cause CPFC real "damage" - opinion

© Provided by Football FanCast Joe Gelhardt Premier League – Leeds United v Wolverhampton Wanderers While Marcelo Bielsa’s Leeds United side have not exactly got off to the best of ... Read more »

Terrorist, 24, who branded herself and her husband the 'Jihadi Bonnie and Clyde' walks free after repeatedly breaching a federal control order

Alo-Bridget Namoa breached a control order to protect public from terrorist act The 24-year-old was sentenced to at least two years and 10 months in jail in 2018 She and husband Sameh Bayda were found guilty of preparing for a terrorist act On her release she was subject to conditions which she repeatedly breached  Read more »

Incredible footage shows police hurling Aussie rapper ChillinIT to the ground and kneeing him in the head for not wearing a mask while Xmas shopping with his MUM - as she gives cops a mouthful

A young Australian rapper has been thrown to the ground and arrested by a policeman who pressed his knee into his back and head. Blake James Turnell, known by his ... Read more »

'Don't put your nose near your daughter's mouth': David Beckham reveals bloodied face after Harper, 10, bit him while he tickled her

David Beckham sported a huge scratch on his nose after his daughter Harper bit him while he tickled her.  Taking to Instagram on Monday, the football ace, 46, shared a ... Read more »

Disturbing details emerge about why a mother killed her son by striking him in the head with an axe before suffocating him with a plastic bag

Erica Heddergott, 82, brutally killed her son, William, 50, last year in VictoriaCourt heard she struck him twice in the head with an axe, then suffocated himShe felt she was dying of cancer, was adamant her son couldn't live without herMrs Heddergott had pre-arranged funerals for her and her son before the murderWas described as 'highly controlling', must spend at least 10 years behind bars Read more »

Video: Cristiano Ronaldo hits out at Ballon d'Or chief's 'LIES' after Pascal Ferre claimed that his career ambition is to finish with more wins than Lionel Messi, as SIXTH-placed star insists: 'I win for myself and my teams. I'm never against anyone' 

Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic