Chancellor: Rate hike will cause worry for families
Jeremy Hunt acknowledged that the Bank of England’s decision to increase interest rates by 0.25% will cause worry for families paying mortgages and businesses with loans. The chancellor however said that underpinning the decision was a “forecast that says that this time next year, inflation will be 2.8% and we will have avoided recession.” Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Transcript
00:00 Of course any rise in interest rates is a worry for families with mortgages, for businesses
00:05 with loans. But underneath that decision is a forecast that says that this time next year
00:12 inflation will be 2.8% and we will have avoided recession. And what the Bank of England Governor
00:18 is saying is that we have a plan that is bringing down inflation solidly, robustly and consistently.
00:25 So the plan is working but what we have to do as a government is make sure we stick to
00:29 that plan. We don't veer around like a shopping trolley, we stick to that plan so that families
00:34 and businesses can start to feel the benefits of that plan actually working.