Rishi Sunak Supports Bank of England on increase in Interest Rates.

PM Rishi Sunak said that he fully supports the BOE on larger than expected interest rate hikes by the central bank. In an interview with the BBC, Sunak quotes that the BOE has a good track record in fighting inflation and identifies ‘inflation’ as the ‘enemy we need to conquer’. Speculators are betting that the BOE’s terminal rate could reach 6.25% by December.

As part of Sunak’s pledge to curb inflation, the government is considering blocking of pay rises for millions of public workers. This could make Sunak highly unpopular in the short-term but Sunak emphasizes that there ‘isn’t an alternative to stamping out inflation’ other than tightening monetary policies.