UK's Treasury chief accepts that recession may be necessary to get inflation down
Britain’s Treasury chief says he would be prepared to see the British economy slip back into recession if further interest rate hikes are necessary to bring down inflation
LONDON (AP) — Britain's Treasury chief said he would be prepared to see the U.K. economy slip back into recession if further interest rate hikes are necessary to bring down inflation.
With the Bank of England expected to keep raising rates following higher-than-anticipated inflation figures this week, Jeremy Hunt said it was necessary to prioritize measures to slow the pace of price increases.
In an interview with Sky News that aired Friday, Hunt said the “only path to sustainable growth” is to bring inflation under control.
Asked if he was comfortable with further rate hikes even if it could precipitate 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."
