The British chancellor supports more interest rate hikes despite the recession risk
Britain’s chancellor is backing higher interest rates to curb soaring inflation, even as it pushes Britain into recession.
Jeremy Hunt told Sky News on Friday: “This is not a trade-off between dealing with inflation and dealing with recession. After all, the only way to sustainable growth is to reduce inflation.”
Asked if he supported the Bank of England raising interest rates to curb inflation, even if it triggered a recession, he said: “Yes, because ultimately inflation is a source of instability.”
To stimulate growth, the government must “support the Bank of England in the difficult decisions it makes,” he added.