The economic landscape of England is passing through a rather dark tunnel, and it will be some time before it makes it to the light of relief. For now, the country is on edge, and it is reflected in the interest rate hike of 0.75 percent, which is the biggest hike since the year 1989. Following the hike, the interest rate has gone up to 3 percent from the previous 2.25 percent. As per the Bank Of England forecasts, the UK is facing a “very challenging” two-year recession, the longest on record. Looks like England is bagging a lot of records but for all the wrong reasons, all thanks to Liz Truss, and her policies that sabotaged the economic front of the country. Read along to know more.
The Hike
The citizens of the UK are in turmoil as the Bank of England raises interest rates to 3 percent. Reports suggest that it might go up further depending on the plight. The economic forecast doesn’t look very promising and is quite concerning. Although the higher interest rates will prove to be a blessing in disguise for savers, it will be quite a blow to those with mortgages, credit card debt, and bank loans. Citizens might have to be quite alert and prudent in dealing with their finances as the higher interest rate is bound to pose a predicament for families and businesses.
The UK has been going through a rather tough phase over the past few months owing to inflation which is at its highest for 40 years. Since December, the country has been witnessing a rise in interest rates as it is the only way to battle the soaring prices. The hike in the interest rate that came into effect today is a direct result of the economic challenges created by Liz Truss’s government. Although Rishi Sunak’s takeover has created a temporary calm, the marks left by his predecessor remain. Sunak’s promised new plan to repair the damage caused gives some hope. However, tax rises and spending cuts are to be expected since it is the only way to deal with the situation at hand.
