By: Melvin Samuel
UK Chancellor of the Exchequer Jeremy Hunt said on Thursday that he will ensure government decisions are in lockstep with the Bank of England’s approach and resist the urge to fund spending or tax cuts through increased borrowing.
“Inflation is a stealth tax that is the biggest threat to living standards in a generation, so we support the bank’s action today so we succeed in halving inflation this year,” Hunt said in a statement.
“We will play our part by making sure government decisions are in lockstep with the Bank’s approach, including by resisting the urge right now to fund additional spending or tax cuts through borrowing, which will only add fuel to the inflation fire and prolong the pain for everyone.”
The Bank of England on Thursday hiked its interest rate for a tenth time in a row as global authorities race to combat sky-high inflation.
The central bank’s Monetary Policy Committee voted at a regular meeting to lift its key interest rate by a half-point to 4.0 percent, the highest level since late 2008.