Chancellor 'risks triggering sharp interest rate rise'
Daily Express|October 07, 2024
RACHEL Reeves' plans to change fiscal rules so she can borrow more may lead to sharp interest rate rises - and mortgage hikes for millions, a Treasury analysis has warned.
Stephen Beech
Chancellor 'risks triggering sharp interest rate rise'

An official modelling exercise indicates the Chancellor's plans could result in the cost of borrowing increasing for mortgage holders and businesses.

The Treasury research suggests that a "fiscal loosening" of 1% of gross domestic product could trigger a "peak increase in interest rates" of up to 1.25%.

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