This morning, Pound sterling rose a little in European trade after three months of despairing lows. It pipped its rivals – mainly the U.S. dollar – to the top post ahead of a parliamentary hearing for Bank of England officials, which will take place later today.
Bank of England hounded by think-tank over UK interest hikes
The Bank of England (BoE) governor, Andrew Bailey, is due to appear in front of the Treasury Committee to address claims by a think-tank that his economic outlook for 2023 is failing. The Resolution Foundation, an independent British think-tank that aims to bolster low-middle-class income households in the UK, suggested that continued tax hikes for the working class, twinned with increased mortgage rates and rental costs, will ensure Britain remains in a technical recession for the duration of 2023. The Foundation’s claims also noted that there have been little signs of inflation easing.
Yesterday, the Conservative government delayed a movement to reduce tax prices, furthering the 12-month course of economic stagnation faced by working-class households.
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Adam Corlett, at the Resolution Foundation, stated:
The good news for the Government is that Britain’s economic outlook is improving as it enters a crucial election year. The bad news is the living standards outlook is still dire, with overall stagnation and further income falls on the way for less well-off households.
Corlett also indicated:
The worst of the cost of living crisis may be behind us, but except for those with significant savings, it is stagnant living standards rather than boomtime Britain that the immediate future has in store.
Earlier this month, the BoE raised the UK’s interest rates for the 14th consecutive quarter and implied that the pace of the country’s borrowing costs will likely incur further interest hikes in September.
