UK Prime Minister Rishi Sunak today said he has full confidence in the Bank of England on monetary policy. Bloomberg reports. His remarks come a day after the Bank of England made a bigger-than-expected rate hike.
According to Sunak, the Bank of England has “handled British inflation adequately” so far, he tells the BBC. “Inflation is the enemy we must defeat.”
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Inflation remains very high in the UK, even as pressure on prices increases in the US and parts of Europe. Investors are now betting on the Bank of England to keep interest rates at 6.25 percent.
Open criticism
Some members of the UK government have been openly critical of the Bank of England in recent weeks as it tries to fight inflation. Bank of England Governor Andrew Bailey is also under fire for failing to recognize in time that post-pandemic inflation will persist, according to critics. Sunak: ‘The Bank of England is doing the right thing, so I have my support.’
