If inflation refuses to fall, interest rates will have to be pushed high enough to push us into a recession. The Prime Minister must be honest about this – even if it comes at the expense of his five pledges.
The Prime Minister insisted in a sombre tone that the conquest of inflation is what will help mortgage holders.
It is younger home owners who are proportionately most exposed to the costs of higher mortgages in relation to their incomes and the value of their houses.