PM promises interest rate cuts if voters stick with him
Rishi Sunak breaks with tradition by saying there would be reductions in interest rates under a Conservative government.
Prime Minister Rishi Sunak promises lower interest rates if the Tories win the General Election.
In a move away from the usual statements on rates, the PM didn’t just say it’s in the hands of the Bank of England.
Instead, he said rate cuts will happen because the economy was “heading in the right direction”.
Cuts soon
Sunak said he shared the Bank’s optimism that cuts will come soon, to give the property market a much-needed boost, The Times reports.
When he served as Chancellor, Sunak was reluctant to predict interest rate moves, saying that it was up to the BoE.
But now he is breaking from that tradition, and claiming that as inflation was falling then rate cuts would follow.
Opinions divided
The inflation rate fell to 2.3% in April from 3.2%, which was still higher than most economists had predicted.
And the Bank held the base rate at a 16-year high of 5.25% earlier this month. Opinions are divided on whether a cut will now come in June or August.
We are the party who has committed to bringing down inflation.”
“Of course it is, because we are the party who has committed to bringing down inflation, which is a necessary condition for bringing down interest rates,” the PM said.
“And I think people can see we have delivered that. And that allows us to think about the future in a more positive and confident way.”