Jeremy Hunt backs interest rate rises ‘to reduce the risk of a recession’ – London Business News | London Wallet

The Chancellor has said that he back interest rate rises because if we want “to grow the economy” we must back the Bank of England.

Jeremy Hunt said on Friday the “only path to sustainable growth” is to bring down high prices.

The Bank of England governor Andrew Bailey has suggested that interest rates could go even higher than the current 4.5% to tackle inflation.

Speaking to Sky News the Chancellor was asked if he was comfortable with the Bank trying to bring down inflation, 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.

“I have to do something else, which is to make sure the decisions that I take as Chancellor, very difficult decisions to balance the books so that the markets, the world, can see that Britain is a country that pays its way – all these things mean that monetary policy at the Bank of England (and) fiscal policy by the Chancellor are aligned.”