The Bank of England’s prediction that the UK is heading into recession has yet again brought the next government’s fiscal policy into sharp focus during Thursday’s Conservative leadership debate.
Liz Truss said a recession can be avoided by cutting taxes and attracting investment, while Rishi Sunak said his opponent’s plan will “put fuel on the fire” of the runaway inflation.
The Bank of England, the UK’s central bank, on Thursday raised the key interest rate to 1.75 percent, the biggest hike in 27 years, to tackle inflation, which is set to hit over 13 percent at the end of the year….