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Michael Gove warns Britain of a “difficult” era in the face of recession

https://sputniknews.com/20220617/michael-gove-warns-britain-of-difficult-times-ahead-amid-looming-recession-fears-1096394112.html

Michael Gove warns Britain of a “difficult” era in the face of recession

Michael Gove warns Britain of a “difficult” era in the face of recession

Earlier this month, the Organization for Economic Co-operation and Development suggested that the UK would be the weakest economy in the G7 in 2023 … 17.06.2022, Sputnik International.

2022-06-17T06: 42 + 0000

2022-06-17T06: 42 + 0000

2022-06-17T06: 42 + 0000

England

Michael gove

Rishi Sunak

government

inflation

Bank of England

Economy

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Britain’s Cabinet Minister Michael Gove has warned that a tough time will come for the country as the government and banks are working hard to tackle rising inflation. He called for pursuing monetary policy to squeeze inflation out of the system. Governments need to “keep control” of the country’s finances, and Downing Street “ensures in difficult times in the coming years. What we need to do is that Britain “cannot break our path.” In another interview with the U.S. media, outlet news desk Gove revealed that economic pressures need to “reduce level-up ambitions” and new tax cuts until inflation is curbed in the UK. Emphasized that it is impossible. Prime Minister Rishi Sunak is “confident” to the British that he can “get it back on track” despite experts claiming that the UK economy may already be in recession. Have it. ” o Former Prime Minister George Osborne warned:[…] Growth is virtually zero and we [the UK] In an interview with Sky News, Britain responded to former Finance Minister Philip Hammond, who suggested that he was “faced with a very difficult time in the short term,” insisting: The UK economy can slow sharply in the fall. When asked if the government should increase spending or reduce taxes, Hammond said people were “looking for an immediate and painless solution.” Injecting more liquidity into the economy, that is, fueling the fire. “And unfortunately, the problem in front of us at this point is not the pain of short-term inflation of 10%. We need to live with it. The problem is inflation next year or so. Is it possible to manage it and return it to the normal state? ” Comments from the OECD warning of zero growth in the UK economy next year came after the Organization for Economic Co-operation and Development. The Organization for Economic Co-operation and Development (OECD) has suggested in its semi-annual economic outlook that the UK economy may already be stagnant next year. Inflation in the UK has already reached its 40-year high of 9%, and a major international think tank warns: This number will continue to rise to a peak above 10% later this year. According to the OECD, the UK economy will grow 3.6% in 2022 and reach zero growth in 2023. The Monetary Policy Committee, which voted 6-3 to raise bank rates by 25 basis points to 1.25%, said in a statement, “Necessary steps to sustainably return inflation to the 2% target in the medium term. Will take. ” The statement followed last month’s Bank of England Governor Andrew Bailey, who warned that British households were facing a “very big income shock.”[The inflation risk factor] He submitted evidence to the Treasury Select Committee in criticism from the senior Tory about responding to rising prices due to inflation soaring well beyond the government’s target of 2%. Increasing living cost crises continue to hurt British consumers, record energy prices, pandemic supply chain turmoil after COVID-19, and Western nations hit Russia over ongoing special military operations in Ukraine rice field.

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UK, Michael Gove, Rishi Sunak, Government, Inflation, Bank of England, Economy

Earlier this month, the Organization for Economic Co-operation and Development suggested that the UK would be the weakest economy in the G7 group of major industrialized nations in 2023. The predictions of major international think tanks came from tax increases and rising food and energy prices that continue to devastate British homes.

Britain’s Cabinet Minister Michael Gove has warned that a tough time will come for the country as a government. Bank of England We are working hard on rising inflation.

At the Times CEO Summit in London, Mr Gove emphasized that “the government is responsible for helping the poorest people with rising living costs, but also for controlling the root cause of inflation.” “.

He called for “squeezing inflation out of the system and pursuing monetary policy, which definitely means.” Governments need to “keep control” of the country’s finances, and Downing Street needs to “secure in difficult times for the next few years.” For years, the UK has “not been knocked out of our course.”

“When squeezing inflation out of the system, I think it will inevitably depend on the Bank of England and the government having fiscal and monetary policy. This inevitably does everything we do. It means you can’t do it. In an ideal situation, you’ll want to do it to help people in difficult times. “

In another interview with U.S. media outlet NewsDesk, Gove revealed that economic pressures need to “reduce level-up ambitions,” and there will be new tax cuts until inflation is curbed in the UK. I emphasized that I wouldn’t get it. ..

Are you already in recession?

Following this Prime Minister Rishi Sunak Experts argue that the country may already be in recession, but “confidently” encourage the British to be able to “return” the upset British economy. ..

“It’s very likely that we’ll see negative growth in the second quarter,” Rupert Harrison, portfolio manager at financial services firm BlackRock, told the BBC.

Harrison, former Prime Minister George Osborne’s economic adviser, warned:[…] Growth is virtually zero and we [the UK] Especially towards the fall when energy prices are rising. “

Pound banknotes can be seen in this figure taken on March 1, 2022. Reuters / Daddle Bitch / Illustration-Sputnik International, 1920, 02.03.2022

UK households are hit by food and garment inflation as fuel costs soar

He responded to former Prime Minister Philip Hammond, suggesting in an interview with Sky News that Britain “is facing a very difficult time in the short term,” and the UK economy will slow sharply in the fall. Insisted that there was a possibility.

“It’s unrealistic and naive to leave tabs on the table and act as if nothing happened, to think that you can somehow move on from there. As part of [COVID-19] “Pandemic,” the former Prime Minister pointed out.

When asked if the government should increase spending or reduce taxes, Hammond said people were “immediately looking for a painless solution” and “inflation by injecting liquidity into the economy.” I can’t solve it, that is, I’m pouring fuel. ” In a fire. “

“Unfortunately, the problem in front of us at this point is not the pain of short-term inflation of 10%. We have to endure it. The problem is that we can curb inflation over the next year. Is it possible? Or so, to get back to normal, “he emphasized.

OECD warns of zero growth in UK economy next year

Comments were made after the Organization for Economic Co-operation and Development (OECD) suggested in its semi-annual economic outlook that the UK economy could already stagnate next year.

Inflation in the UK has already reached its 40-year high of 9%, and a major international think tank has warned that this number will peak above 10% later this year. According to the OECD, the UK economy will grow 3.6% in 2022 and reach zero growth in 2023.

On Thursday, the Bank of England raised rates five times in a row in an effort to curb inflation spikes. The Monetary Policy Committee, which voted 6 to 3 to raise bank rates by 25 basis points to 1.25%, said in a statement, “Necessary steps to sustainably return inflation to the 2% target in the medium term. Will take. “

British Pound Banknotes-Sputnik International, 1920, 09.05.2022

According to experts, the UK economy is “one of the most vulnerable countries” due to inflation and mortgage trends.

A statement followed last month’s Bank of England Governor Andrew Bailey, who warned that British households were facing a “very big income shock.”[The inflation risk factor] It’s food that sounds pretty apocalyptic to me. “

He submitted evidence to the Treasury Select Committee in criticism from Tory executives about responding to rising prices due to inflation soaring well beyond the government’s target of 2%.Increasing living cost crises continue to hurt British consumers, record energy prices, pandemic supply chain disruptions after COVID-19, and Western nations hit Russia Its ongoing special military operation In Ukraine.

https://sputniknews.com/20220617/michael-gove-warns-britain-of-difficult-times-ahead-amid-looming-recession-fears-1096394112.html Michael Gove warns Britain of a “difficult” era in the face of recession

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