The Tesco chairman has issued a stark warning about the impact of rising interest rates on the cost of living crisis. John Allan said that the rising cost of food and power will be joined by soaring mortgage costs.
His comments were made after the Governor of the Bank of England Andrew Bailey suggested interest rates may have to be raised higher than initially expected to tackle inflation. The bank raises interest rates to foster better conditions for savers, but an effect of that rise can be escalating mortgage costs.
Mr Allan told Laura Kuenssberg on her BBC Sunday morning programme: "The reality is that the movement in interest rates is now going to lead to much higher mortgage [repayments] for millions of people. Lots of people I think are [already] struggling with the existing elements of the cost of living crisis in food and so on."
