UK chancellor backs more interest rate rises despite recession risk
The UK chancellor has backed higher interest rates to curb soaring inflation even if it tips Britain into recession.
Jeremy Hunt told Sky News on Friday: “It is not a trade-off between tackling inflation and recession. In the end, the only path to sustainable growth is to bring down inflation.”
Asked specifically whether he supported the Bank of England in raising interest rates to tame inflation, even if it precipitates a recession, he said: “Yes, because in the end, the inflation is a source of instability.”
In order to encourage growth, the government must “support the Bank of England in the difficult decisions that they take”, he added.