Bank of England warns it will lift rates if pound’s fall continues after Truss’ tax cut gamble

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Bank of England warns it will lift rates if pound’s fall continues after Truss’ tax cut gamble | latikambourke

The Bank of England says it will not hesitate to hike interest rates “by as much as needed” after Prime Minister Liz Truss’ announcement about tax cuts for the rich triggered the fall of the pound and a surge in the cost of the UK government’s debt.astonishing gamble - that cutting tax for top earners will spur economic growth -

“The role of monetary policy is to ensure that demand does not get ahead of supply in a way that leads to more inflation over the medium term,” said the bank’s governor Andrew Bailey. “Desperate times call for desperate measures but when the wound is so self-inflicted and terms such as ‘behaving like an emerging market currency’ are being thrown around, I’m not sure we should be hoping the central bank will fix everything,” he said.

 

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