Annabelle Sanderson says Liz Truss 'was right'
The average two-year fixed-rate mortgage has official gone above the peak seen after Liz Truss and Kwasi Kwarteng’s mini budget during her short tenure as Prime Minister.
The average two-year fixed rate has now hit a 15-year high of 6.66 percent, passing the 6.65 percent seen in the wake of Liz Truss’s attempts to revitalise the economy during her short-lived premiership.
The news is yet another blow to Rishi Sunak and Jeremy Hunt, who Tory MPs brought in to replace Liz Truss in the hope they could steady the ship.
The Times described the new record high - not seen since 2008 - as a “watershed moment” for the Prime Minister and his Chancellor.
Mortgage brokers believe the average two-year fixed rate will now peak around 7 percent, and not fall until 2024.
A source close to Liz Truss has today blasted the Government over their record.
One told express.co.uk: “It was always clear interest rates were going to have to be raised from the artificially low levels of recent years".
“One of the reasons Liz was pursuing a pro-growth agenda was precisely so that households and government would be better placed to deal with the consequences.
“Sadly we now find ourselves in a situation with higher interest rates and stagnant growth, but with none of Liz's reforms being enacted that would have given the economy a much-needed shot in the arm.”
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Tomorrow, Ms Truss will officially launch her Growth Commission in central London, a new “international task force”, a non-partisan group, to investigate the causes of sluggish growth.
It will be chaired by the leading economist Douglas McWilliams, who will analyse the impact different policy decisions have on GDP per capita.
The commission will also bring together a team of global, independent economists from across the G20 to conduct research into why growth has become so sluggish.
Her allies are also causing a storm in Westminster, with the co-chair of the Trussite Conservative Growth Group of Tory MPs yesterday launching a report calling on the government to reform taxes on families and inheritance.
Ranil Jayawardena MP blasted the current UK tax system as unfairly discriminating against families, and said that helping families is good politics and good tax policy.
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