Andrew Marr: Inflation falling could change the political atmosphere leading up to the next general election
11 May 2023, 18:13
Andrew Marr unpacks how a fall in inflation could change the political atmosphere
If inflation remains on course to halve by the end of this year, the atmosphere leading up to the next general election might be a lot more cheerful, Andrew Marr has said.
It comes after the Bank of England increased its interest rate to 4.5 per cent, meaning millions of homeowners face paying several hundred pounds more each year on their mortgages.
Speaking on LBC's Tonight with Andrew Marr, the presenter said: "As of right now interest rates have risen to their highest point in almost 15 years - part of the biggest squeeze on household budgets in my lifetime dash and I am a moderately old git."
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Marr continued: "Inflation is being a bit stubborn to say the least and the Bank of England’s raised rates 12 times in a row. Crikey. That will hit a lot of mortgage holders and other borrowers."
"But if you can pay the extra for the time being, you probably shouldn't panic: the governor of the Bank of England, Andrew Bailey has said this afternoon that he thinks this country will avoid going into a recession.
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"And that inflation’s on course to halve over the rest of this year. So the politics of all of this aren't simple. Labour is quite naturally making hay this evening over government failure.
"But if inflation does fall sharply and the economy does pick up, the atmosphere might be a lot more cheerful well ahead of a general election next autumn."
