UK’s Jeremy Hunt ready to risk recession to bring inflation down

LONDON ̵1; Jeremy Hunt is prepared to accept a recession if raising interest rates helps curb inflation, the UK chancellor has indicated.

one in sky news interview fridayHunt insisted that “the only way to sustainable development” was to reduce the cost of essential goods.

Asked whether he was comfortable with further interest rate hikes, even if they risked pushing the UK into recession, Hunt said: “Yes, because ultimately inflation is a source of volatility.”

“If we want prosperity, if we want to grow the economy, if we want to reduce the risk of recession, we have to support the Bank of England in the difficult decisions they make,” Hunt said.

Under UK monetary policy, the power to raise interest rates rests with the independent central bank. As part of its bid to tackle extremely high inflation, the bank raised its key base rate to the highest level since the middle of the global financial crisis in 2008.

despite the recent fall below 10 percent For the first time in months, the consumer price index inflation rate in the UK stands at 8.7 per cent. Food prices in the UK also continue to rise at the fastest pace in nearly 45 years.

One of the key promises of British PM Rishi Sunak is to halve the rate of inflation, which was 10.1 per cent when he promised in January.

The opposition Labor Party hit back at Hunt’s suggestion that a recession might be the price to be paid for reducing inflation.

Shadow Trade Secretary Nick Thomas-Symonds told Sky News: “No government should ever be satisfied with just seeing a recession.” “Frankly speaking, this government has no credible plan to restore growth.”