Rishi Sunak has urged cash-strapped Britons to “hold our nerve” with interest rate hikes as he stressed “there is no alternative” to stamping out inflation.
The Prime Minister said “inflation is the enemy” as he defended the Bank of England’s decision to raise interest rates to a 15-year high last week, piling pressure on mortgage-holders.
The central bank issued its 13th interest rate hike in a row, this time by half a percentage point from 4.5 per cent to 5 per cent in the sharpest increase since February.
Surprising economists who had been expecting a smaller hike of 0.25 percentage points, the move brought rates to the highest level in nearly 15 years.
The increase aims to reduce inflation, which measures the rate of rising prices and remained at 8.7 per cent in May despite efforts to tame it.
The rates hike left mortgage-holders bracing for a big jump in their monthly repayments.
Mr Sunak told the BBC’s Sunday With Laura Kuenssberg programme: “The Bank of England is doing the right thing. The Bank of England has my total support. Inflation is the enemy for all the reasons that we have talked about. Inflation is what makes people poorer.”
Asked if there is another way than raising interest rates, the Prime Minister said: “There is no alternative to stamping out inflation.
“I get that this is challenging, but we’ve got to stick to the course.
“I want people to be reassured that we’ve got to hold our nerve, stick to the plan and we will get through this.”
Reactions to the PM’s message to voters has been quick to flood in.
Here’s a pick of what people have had to say:
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