The U.K. government hopes tax increases and other measures laid out in its latest budget announcement won’t just halt a rise in its debts, but also curtail inflation, offering space for the Bank of England to lower its key rate and alleviate its own debt-interest payments.
However, economists say that while the budget will help cool the pace of price rises, it is unlikely to do so in the sustained manner that would open the way for many more rate cuts.
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