A former member of the Bank of England's Monetary Policy Committee (MPC) has said further increases to interest rates may be necessary to stick to the 2% inflation target.
Martin Weale suggested: "I think the Monetary Policy Committee probably will want to continue to raise interest rates until they're clear that inflation, or some leading indicator of inflation like pay growth, has actually turned down." Report by Buseld. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
The new Chancellor Kwasi Kwarteng told the Governor of the Bank of England Andrew Bailey that their independence was a “cornerstone” of managing the economy. Kwarteng did warn that independence didn’t mean they had immunity over what they were allowed to say.
Report by Cullenl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
UK Announces , 80% Spike in Costs , As Energy Crisis Worsens.
Associated Press reports that people
in the United Kingdom are struggling
to cope amid a cost-of-living crisis.
The U.K.'s energy regulator announced
that the crisis will continue with an
80% increase in annual household energy bills.
The announcement comes
following a record
54% spike in April. .
AP reports that the latest price
cap will take effect on October 1.
In January, energy bills are
once again expected to rise.
Russia's invasion of Ukraine sent
wholesale natural gas prices soaring
and drove up consumer costs.
The U.K. is experiencing
the highest inflation rate among
Group of Seven nations.
In response, many workers have gone
on strike, pushing for pay to keep up
with the rapidly rising cost of living.
National rail workers, postal and port workers,
garbage collectors and lawyers have all
staged walkouts or strikes over pay disputes.
According to the Bank of England, inflation
is expected to rise above the 40-year high
of 10.1% which was just set in July.
England's central bank predicts
that the record-high inflation will
trigger a recession sometime in 2022. .
According to a May study by the Joseph Rowntree Foundation,
approximately one million low-income households have already
taken on new or extra debt to cover an essential bill
Credit: Wibbitz Top Stories Duration: 01:30Published
UK Economy Fell a Record 11% in 2020, , Worst Drop Since 1709.
According to Reuters, official figures paint a bleak picture of Britain’s current economy. .
Due to the COVID-19 pandemic and other economic upsets, the UK’s output dropped the most in more than 300 years. .
The Office for National Statistics stated that GDP fell by 11.0% in 2020.
The department’s initial estimates already predicted that Britain’s output would fall more than the "Great Frost" of 1709.
The ONS regularly updates its GDP estimates as new data comes in.
Their updated figures show lower contributions from retail and
healthcare than expected. .
The health service faced higher costs than we initially estimated, meaning its overall contribution to the economy was lower, ONS statistician Craig McLaren, via Reuters .
Due to high inflation, the Bank of England predicts the economy will
go into recession later this year.
Credit: Wibbitz Top Stories Duration: 01:30Published
Business Minister Greg Hands insists the government has given "enormous" support for vulnerable households, as the Bank of England announces a 0.5 per cent growth in interest rates, its biggest hike since 1995. He also claims Russia's invasion of Ukraine is to blame for soaring energy costs across most Western countries.
Report by Brooksl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Sadiq Khan has appealed to new Conservative Party leader Liz Truss to “work together” to “attract investment” into the capital city. The Mayor of London said: “You don’t get levelling up by levelling down London.” Report by Jonesia. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Liberal Democrat leader Sir Ed Davey says his party “want an early election” following the announcement that Liz Truss will become prime minister. Sir Ed said: “In the last year we have beaten the Conservatives in three by-elections in their heartlands and we’re up for beating them again.” Report by Jonesia. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Conservative Party members have chosen Liz Truss to replace Boris Johnson and ultimately become Britain’s next prime minister. The foreign secretary secured 81,000 votes while her opponent Rishi Sunak won 60,000. Report by Burnsla. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Scottish First Minister Nicola Sturgeon says she "genuinely" wishes Liz Truss "all the best" as she prepares to take on the role of prime minister but warns that Liz Truss "must act now" on the cost-of-living crisis. Report by Lewisl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Home Secretary Priti Patel has been heard telling opposition MPs to "shut up" after they heckled her as she paid tribute to the outgoing prime minister Boris Johnson. Report by Lewisl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
IFS director Paul Johnson says the government's plan to cut taxes is a "big gamble" with public finances and inflation and will lead to the Bank of England "doing more" to raise interest rates. Report..