Report: Britain’s Sunak says higher interest rates could lift cost of repaying govt debt | Money


Britain's Chancellor of the Exchequer Rishi Sunak poses with the red budget box outside his office in Downing Street in London March 11, 2020. — Reuters pic
Britain’s Chancellor of the Exchequer Rishi Sunak poses with the red budget box outside his office in Downing Street in London March 11, 2020. — Reuters pic

LONDON, Jan 11 — British minister Rishi Sunak expressed concern that higher interest rates might one day jack up the cost of servicing government debt, in comments published on yesterday.

Government borrowing must be held in check as record low interest rates were not fully understood, he told City AM’s The City View podcast, which was reported by The Telegraph newspaper.

“We should have some humility about saying what we think will happen,” Sunak was quoted as saying in the report.

Interest rates in Britain currently stand at a record low 0.1 per cent.

The minister said he had a duty to manage the public finances in a way that was “sustainable over time,” according to the report.

Sunak launched a RM4.6 billion (RM18.6 billion) support package for businesses on Tuesday to soften an expected recession caused by a surge in Covid-19 cases that has triggered a third national lockdown.

He has previously announced emergency help for the economy worth £280 billion, including a massive job protection scheme that will run until the end of April. — Reuters



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