The future for the UK economy looks distinctly “uncomfortable”, according to the assessment of Sir John Gieve, the deputy chairman of the Bank of England.
Speaking at the London Stock Exchange recently, Sir John suggested that inflation levels will continue to rise as they have been recently and that unemployment rates could soon begin to pick up.
Both predictions will be unwelcome news for families across Britain, many of whom are finding it difficult to keep a handle on their debt management difficulties.
Sir John went on to make clear that while an interest rate cut could help consumers, the pressures on the economy from rising commodity prices make the option considerably less viable.
“After 15 years of unbroken growth and low inflation, the prospect for the rest of this year is uncomfortable, inflation will continue to rise sharply while growth tails off and unemployment picks up,” he said.
Older generations are among those being most acutely affected by the rises in the cost of living, Alliance Trust reported recently.
By Dan Mather