PM raises spectre of 1970s-style economic crisis that could force dramatic rise in interest rates
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Boris Johnson has raised the spectre of a 1970s-style “wage-price spiral” that could force the Bank of England to push up interest rates dramatically, if workers demand to be compensated for rocketing prices.
The prime minister vowed to tackle low growth and the cost of living crisis but said the government would put a new focus on the cost of housing, including extending the right to buy and a comprehensive overview of mortgage products aiming to radically increase the number of 95% mortgages on offer.
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