Britain’s Chancellor of the Exchequer says he would throw his weight behind the Bank of England’s monetary policies to tackle inflation, even if it means the country could plunge into recession.
Jeremy Hunt made the remarks during an interview with Britain’s Sky News broadcast on Friday. He said the “only path to sustainable growth” is to bring inflation under control.
Asked if he was OK with further rate hikes even if it could cause a recession, Hunt said, “Yes, because in the end, inflation is a source of instability. … It is not a trade-off between tackling inflation and recession.”
“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,” Hunt said.
The opposition Labour Party was quick to hit back. It said the government has no plans to restore growth.
"No government should ever be content to see a recession," Shadow Trade Secretary Nick Thomas-Symonds told Sky News. "Frankly, this government has no credible plan to restore growth."
The Bank of England has already raised its interest rate to tackle high inflation. Now, it may raise again to as high as 5.5 percent. Inflation in the UK has slowed to 8.7 percent in April.
However, food prices continue to surge at the fastest rate in over four decades. The country has been hit by numerous strikes over the worsening cost of living crisis.
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