UK has made transition to higher rates world 'as difficult as possible'

Treasury Select Committee

clock • 3 min read

The UK has made the transition to a new macroeconomic environment of higher interest rates “as difficult as possible”, with the divergence of monetary and fiscal policy one of the main drivers.

Speaking at a Treasury Committee meeting questioning economists on the impact of the recent Mini Budget, chief executive of the Resolution Foundation Torsten Bell described the "impossible situation" the Bank of England has been placed in. Treasury Committee grills BoE on bond-buying expansion "Moving to a new macroeconomic environment of higher rates was always going to be really difficult and it was always going to involve tensions," he said. "But we [the UK] are now the test case for ‘can we make it as difficult as possible to travel that transition to a higher rate interest world?...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Cost of Living

Trustpilot