There is no alternative. That was the message today from the Chancellor, saying the government gave complete backing to the Bank of England in its bid to bring down inflation by raising interest rates.
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Jeremy Hunt was speaking after new figures showed the economy is growing – but that’s before we’ve seen the full impact of the recent rate rises.
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The UK economy has been grappling with stubborn inflation, sluggish growth, and the looming threat of a recession. Experts and policymakers have expressed concerns about ongoing economic struggles, calling for immediate action to address these challenges.
One of the most concerning issues facing the UK economy is the persistence of stubborn inflation. The latest data shows that inflation remains consistently above the Bank of England’s target of 2%. The rise in prices has been fueled by factors such as higher energy costs, increased import prices due to a weaker pound, and disruptions in global supply chains. As a result, the purchasing power of consumers has been eroded, putting a strain on household budgets and dampening economic activity.
Another critical issue is the slow growth that has plagued the UK economy in recent years. Despite efforts to stimulate growth through government spending and accommodative monetary policy, the pace of economic expansion has been lackluster. Brexit uncertainties, a decline in business investment, and a sluggish global economy have all contributed to the sluggish growth environment. This has hindered job creation, wage growth, and overall economic prosperity.
Furthermore, the persistent inflation and slow growth have created a perfect storm that risks pushing the UK into a recession. The combination of rising prices and economic stagnation has the potential to undermine consumer and business confidence, leading to decreased spending and investment, and ultimately, a contraction in economic output. The uncertainty surrounding Brexit negotiations has only added to the concerns, as businesses hold back on major investments until a clear path forward is established.
To address these challenges, policymakers need to adopt a multi-faceted approach. Firstly, efforts should be made to tackle inflationary pressures by managing import costs, boosting productivity, and ensuring competition in key sectors. The Bank of England may need to consider adjusting interest rates or other monetary tools to help stabilize prices. Secondly, there is a need to restore business confidence and encourage investment. This can be achieved through clearer guidelines and a smoother Brexit process that offers certainty for businesses. Additionally, targeted fiscal policies and incentives can help drive innovation, research, and development.
Furthermore, the UK government should prioritize investments in infrastructure, education, and skills training to foster long-term economic growth. This would help create job opportunities, increase productivity, and support new industries. Additionally, closer collaboration with international partners to diversify trade relationships and reduce reliance on specific sectors can protect the economy from external shocks.
In conclusion, the UK economy is grappling with stubborn inflation, slow growth, and the looming threat of a recession. These challenges require urgent attention and a comprehensive approach from policymakers, including measures to address inflationary pressures, restore business confidence, and drive long-term growth. Failure to address these issues promptly could result in further economic downturns that may have long-lasting consequences for the UK and its citizens.
Oooh nooooo! Project fear in the face! It is a shame remainers suffer as well
Inflation at its core is excess demand over supply – excess demand in the form cash has no product to buy. Britain makes nothing, and if you have an idea for a product, want to make something, there will be a mass of regulation, culture impediments (woke environmental) to stop you. Everything being imported we are held hosted to the productive capacity of other countries. Furthermore, Russian sanctions have backfired. People are too stupid to wake up, only a complete collapse will resolve..The only chance the UK had was implementing Brexit, however ‘Level Playing Field’ ensured there would be no competitive advantage leaving the EU.
Only idiots think that the only way to combat inflation is rising interest rate. For example, are you going to give up eating at all if you dun have money of course not, so settle the food crisis, then the inflation will fall
Let me just answer the question so you don't have to view the whole video.
Because we are sanctioning Russia which is basically means we are paying the higher import prices for bread fuel etc. We literally shot ourselves in the foot
I hope the UK becomes the next Lebanon or Sri Lanka. They will pay for the sins of their ancestors.
Look at the latest ONS HPI house prices. Apr 23s bulletin states house prices have increased 3.5% in the last 12 months. However, go back 12 months to May 22 (286000 and 283000 and that is 12 months full data) and even an idiot can see the increase is only about 1%. Dec 22 they are 2.6% out and 2021 2.9% out. This is approaching 550 billion out in just 30 months. Is this part of the banks ponzi scheme. Work it out for yourself but they seem to have been over exaggerating by 2% in house prices. In Jul 22 it was 5% out in one month. Please work this out for yourself as this is stealing from the poor to give more money to the rich.
Because all the media report is doown and gloom while we are shafted with huge interest rate rises ..thus stopping us spending.
the tories have had 12 years to rebuild the economy with boosting industrys what have they done nowt at least labour created industrys not shut them down.
Profiteering across the board in supermarkets , within energy companies , the ridiculous price of fuel is giving a distorted inflation rate , companies are making record profits , booming marvellous for them and the incumbent government are satisfied with making life for the average joes in the U.K. as miserable as possible , I’m in Spain at the moment and if I could would live there permanently, the whole country is happy , better , cheaper than the U.K. , I dread going back to rip off Britain tomorrow , what a dismal , miserable place it is to live
Because they put Charles
In charge
Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.
"More than half a trillion pounds’ worth of under-investment by government and business over recent decades has left Britain’s economy trapped in a growth “doom loop”, according to a think-tank.
Sounding the alarm as the economy struggles to gain momentum, the Institute for Public Policy Research said the UK risked falling further behind comparable wealthy nations without a sharp turnaround in approach.
Business investment is lower in the UK than in any other country in the G7, and 27th out of 30 OECD countries, ahead of only Poland, Luxembourg and Greece.
Highlighting a severe shortfall in public and private investment stretching back over several decades, the IPPR’s research showed that Britain had ranked below the G7 average since 2005 for spending on infrastructure, research and development, skills and training.
Had the UK maintained its position at the G7 average since that date, the private sector would have invested an extra £354bn in real terms. If public sector investment had also held that position, the UK government would have invested an additional £208bn between 2006 and 2021.
However, the UK has steadily slipped down the global investment league tables as successive governments have held back from boosting expenditure, alongside a faltering performance in the private sector – amounting to a shortfall versus the G7 average worth the equivalent of 30 Elizabeth line rail projects."
Elizabeth 2 plotted all the WARs from Singapore, her family is tied to frauding and theft with escorts impersonating videos or photos and the Singapore Police in house break INS and robberies since early 90s when they did it with Diana and Fann WONG, WARs are done by Mr WONG kan Seng, NG Joo Hee, Melvin YONG Yik Chye, TAN Chuan Jin, Tharman, Vivian Bala, KShanmugan, Halimah YACOB Masagos Zukifli, with her indian in the UK, they plotted the WARs by harassing for money and CCTVS with Fann WONG, Jeanette AW, Kate Middleton and Megan Markle. They are all tied to house break INS and theft in Asia with Malays indians tied to Halimah YACOB, Masagos Zukifli whereby they swindle cash and steal multiples to themselves. Elizabeth 2 is the one that embezzled cash repeatedly and stole multiple times to cover up for herself, whether it was Diana or the wars they plotted with Obama. With Fann WONG, Jeanette AW tied to Bank FRAUDs. It's done by WONG kan Seng, NG Joo Hee, NG Eng Hen, CHANs tied to Chan Sek keong, Chan Wei Hong, with Fann WONG they do it with their extended family members same with TAN Chuan Jin, CalCarries-Jane Leong, Angelyn Li, Wayne Li with Li Hsien Loong, they are all tied to a network of organized criminal activities to fund their expenses and these wars they plotted during WW2 and present cause they are after land and money. The whole entire Clementi Head quarters, Bukit Panjang station, Bukit Timah, Bukit Batok with Melvin YONG Yik Chye are the ones behind all your WARs they are all hired by Li Hsien Loong. He bribes all of them with swindled cash, stolen items, Elizabeth 2 did the same thing with Kate Middleton and Megan Markle, with her indian, Halimah YACOB, Masagos Zukifli, Lawrence POH hock guan, LIN-YIH, Wayne Li , SAVILLS management office staff and committee members. Sadon Suraiman whose brother committed robbery to assist them with house break INS. Using CCTVS. NG Joo Hee, Melvin YONG Yik Chye and the Police in drugs, prostitute trafficking and robberies are behind all your WARs with escorts impersonating videos. Hired by Li Hsien Loong and his ministers, police and family members, they looted out your TAX to fund the wars, repeated it again during the pandemic.
The economy absolutely is not growing these charlatans are lying through there back teeth.
Uk gov why dont you start investing into assets that generate more money for the uk
Turn it around,get ridd of liabilities that dont produce anything and drain resources like illegals
Wfh
Covid
Lack of investment
Billionaire bashing
Anti buisness
Conjestion charge
Ulez charge
Poor uk education system
Stupid tax system
This wasn't supposed to happen. Brexiteers told us we would be living in the land of milk & honey. They told us our NHS would thrive. They told us we could pay our bills in sovereignty and it's all we'd ever need! …Something something.. control our borders, our money, our fish they said.
For a few months now I have been searching tirelessly for information on how to start investing. I even payed $400 for a course that I now regret. It appears that there is no structured guided for beginners on how to get started in this realm. I’ve came across several investors making well over $250k/annual and I would be grateful if anyone on here could provide insights on how to get started, identity potential stocks, when to make an entry, exit etc
IF high rates worked then the 500% increase from 1/2% to 5% would have done SOMETHING ????
Yet we still have inflation …
Clearly Rates have little effect on inflation
think about it 12 years of near zero % rates and no inflation …
The Bank of England is clueless !!!!!!
Why is the UK economy flatlining? Ummm….. Brexit?
My 0.99% 2 yr fixed deal ends this December. Uk economy is a absolute joke.
One of my Y13 students wrote "outraged – very disappointed in the Tory Govt" another "delicate and hanging over the edge" "Absolute shambles the UK needs a supply side miracle!"
The uk is gonna be a third world country at this rate
English bandit cradle habits never leave until cemetery . U should know better anchor Boris thought that He can steal Ukraine oil gas & Crimea
But failure after that went Saudi Arabia . That’s also failure.
The UK spent the last two centuries destroying societies left and right and thinking of itself as superior and exceptional. I say good riddance!
When I was in UK. I saw empty boarded up streets under a constant grey sky, litter was everywhere. No one cared about anything. Homeless people sleeping in doorways. Opioid addicts out of their mind and women so drunk they defecated on the streets. It's a sad declined country
Absolute RUBBISH from Jeremy Hunt and the Bank of England!
Raising interest rates will NEVER be effective in reducing inflation on essential resources, such as food and fuel!!! END OF!!!
Inflation is being "…stubborn…" because their approach isn't working and won't ever work with this type of inflation!!
Covid 'lockdown-driven' inflation on non-essentials would naturally settle down as supply increased again, post-Covid. So there is no need to increase interest rates for that, either.
Energy and food price rises have taken money out of people's pockets, leaving less for them to spend on other things.
This reduces demand on non-essential items, causing associated businesses to have less trade and begin to struggle.
Raising interest rates increases borrowing costs for businesses and the public, which takes even more money out of people's pockets, leaving them even less, or nothing, to spend on non-essentials ('little luxuries').
Arguably, in the business context, it drives up inflation, as business costs increase. It certainly reduces their margins!!
Desperate discounting and redundances by retailers (struggling with cashflow) naturally follow as business slows and the economy contracts.
So, raising interest rates is exacerbating economic contraction, causing widespread suffering, and having precisely zero impact on inflation.
Jeremy Hunt and Andrew Bailey need to understand this and bring interest rates back down . . . or be removed from their posts. IMMEDIATELY.
It’s 1984. The system is working how the elite designed it and there will be no positive change unless we at the bottom create it by force
Simple, GB has had an incestuous economy for decades. A service based economy is just ponsing off of the disposal income of others.
We already are in Recession!!!! And after extreme poor cons gov s high mistake on brexit,Covid etc,l,. Poor medias …, ? like Germany and others « Nato » puppets of usa ´si escalation of the confct in ukraine , instead of settling a peace treaty so all can re start and recover urgently’ and before… even the threat of ww3 so ..the end,,,for all, as would be nuclear, sick leaders,
The Tories know they are going to lose the next election, so they are just going to watch everything implode so they can handover the biggest mess to Labour. Not that Labour are any better, the world's a stage. It's good cop vs bad cop, but it's the same people behind the scenes pulling the strings.
Lol is it flat lining the serious question is we're fcked
Just restructure Energy Companies for consolidation and bring down the inflation. The Profits could be used to introduce 100 Megawatt Nuclear Powerplants.
Cause we are under a controlled collapse to "build back better" .You two are narrative pushers not news nor "reporters"
Little fishy Rishi pull my string "stop the boats" and his cesspool Tory government are finished. Not my PM.