Jeremy Hunt has said he is “comfortable” with the UK falling into recession if that’s what it takes to bring down inflation.
Speaking to Sky News, the chancellor said that he would support the Bank of England raising interest rates higher in a bid to tackle high prices.
UK inflation currently stands at 8.7% — down from 10.1% a month ago but still higher than forecast. The data led to speculation that further rate rises may be on the horizon.
Asked by Sky News whether he was “”comfortable with the Bank of England doing whatever it takes to bring down inflation”, even if that might cause a recession, Hunt said:
“Yes, because in the end, inflation is a source of instability.
“If we want to have prosperity, to grow the economy, to reduce the risk of recession, we have to support the Bank of England in the difficult decisions that they take.”
The Bank of England increased the base rate to 4.5% in May.
Sky News noted that while a week ago the anticipated peak for interest rates was around 4.75%, it climbed to 5.5% following Wednesday’s inflation statistics.
