The fight against inflation is a priority, even at the cost of recession

Via Le Figaro with AFP

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In April, the country’s inflation stood at 8.7% year-on-year. Toby Melville/Reuters

British Finance Minister Jeremy Hunt reaffirmed on Sky News on Friday that his economic priority is the fight against inflation, even at the cost of recession. United Kingdom. After the data pointed out, the Bank of England was asked about further interest rate tightening A slowdown in inflation April was marked lower than expected, Jeremy Hunt underlined “Ultimately, inflation is a source of instability, and if we (…) want to reduce the risk of growth and recession, we need to support the Bank of England.(BoE). After the panic in financial markets during Liz Truss’s interim government, the finance minister is taking care to present himself to finance officials, who have criticized the policy. Bank of England and released a massive, underfunded budget. Jeremy Hunt also spoke “The tough decisions I will take as chancellor to balance the public accounts will ensure global markets see that Britain is a payer.“Their debts.

A message of orthodoxy since the latest inflation figures were released – 8.7% in April, the highest in the G7 – UK long-term borrowing rates have risen near the peak of the crisis created by the Liz Truss government. Investors expect rates to continue rising this year and reach 5.5% by the end of 2023 against 4.5% currently. These increases in borrowing rates in the markets are reflected in the BoE’s tightening of key rates and the increase in borrowing costs for British individuals and companies, particularly real estate. However, the British economy has so far survived recession, giving the BoE some leeway. The International Monetary Fund (IMF) announced this week that it expects British growth to rise 0.4% throughout 2023, still expecting a slowdown in its previous forecast.

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Also, Tata Motors, the Indian conglomerate that is the parent company of Jaguar Land Rover, has chosen the United Kingdom to build a massive electric battery factory there. Grant from London. However, he promised a Conservative government Rishi Sunak will do”What is needed to ensure that (the country) remains competitive at all times?“. “We have a £1 billion car conversion fund. Other countries support investing companies. Creating these jobs is good for the UK and good for (its) transition to carbon neutrality“.

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