THG founder Matt Moulding has insisted there’s ‘genuine good news around the corner’ despite the latest interest rate rise.

On Friday the Bank of England raised interest rates for the 14th time in a row, increasing from 5 per cent  to 5.25 per cent, prompting growing fears of a recession.

The Bank of England insist raising interest rates is the only way to tackle inflation but it also means higher rates on mortgages and loans.

However Moulding insisted there were signs for optimism in his latest LinkedIn blog.

“The key drivers of inflation have long gone, there’s just a lag in consumers benefiting,” he said.

“All commodities have plummeted in the past 12 months, to levels not seen for years. It just takes time for it to appear in newly manufactured products on shelves.”

Why did THG buy CityAM?

Moulding, who bought stricken London business newspaper CityAM last month, said rising inflation was bad for everyone.

“Basic economics tell us that when the world prints money, inflation follows,” he wrote.

“When Covid and lockdowns hit, countries faced economic and social meltdown and were forced to print money to fill the huge financial chasm created.

“Central banks and governments couldn’t stand by and watch people starve, or for riots and looting to start.

“And so money was printed and handed out to those affected. Now we’ve got the inevitable inflation, and the printed money must be taken back out of the system again, otherwise, inflation spirals, currencies risk collapsing, and we’re back to riots and looting.

“Sadly, the only tool to reduce inflation is interest rates. It’s painful, horrible and difficult for almost everyone.

“It’s not just mortgages and food prices affected from interest rates; businesses are deeply affected too. Investments are scaled back, and cost savings become every company’s focus.

‘A recession is imminent’: Will latest interest rate hike work?

“THG is a huge global buyer of whey protein for our Myprotein family of brands. This commodity is now trading at its lowest level for seven years.

“In the US, milk is being poured away by farmers as supply far exceeds demand. And so cheaper prices are coming everywhere, and soon….”

Last week The Moulding Foundation donated £250,000 to UA92, the Manchester-based university set up by Gary Neville and the ‘Class of 92’, to support a new bursary scheme.