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Truss, Sunak clash over cost-of-living crisis
Truss, Sunak clash over cost-of-living crisis

London, Aug 8 (TIWN) Rishi Sunak and Liz Truss, the two contenders vying to replace UK Prime Minister Boris Johnson, have clashed over the cost-of-living crisis.

Sunak said his rival in the Conservative leadership race would further drive up interest rates, raising mortgage payments, with her plans, reports dpa news agency.  His warning came as the Bank of England was forecast to raise interest rates to the highest level in nearly three decades on Thursday, from 1.25 per cent to 1.75 per cent.  An announcement by the central is scheduled for midday, with experts warning that inflation could peak at 15 per cent, adding to the already painful cost-of-living crisis with spiralling prices.  Meanwhile, the pair are also due to face off in a head-to-head debate on Sky News on Thursday evening.  Sunak has faced attacks from Truss for overseeing rising taxes while in No 11 during the pandemic, as she pledges a more radical plan to slash them.  He has insisted he does want to see taxes come down, but argues it is necessary to bring inflation under control before making major changes.  The former Chancellor stressed there are "crucial differences" between their plans "because timing is everything".  "If we rush through premature tax cuts before we have gripped inflation all we are doing is giving with one hand and then taking away with the other," he said in a statement.  "That would stoke inflation and drive up interest rates, adding to people's mortgage payments. And it would mean every pound people get back in their pockets is nothing more than a down payment on rising prices.  "A policy prospectus devoid of hard choices might create a warm feeling in the short term, but it will be cold comfort when it lets Labour into Number 10 and consigns the Conservative Party to the wilderness of opposition."

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