Hunt still comfortable with UK entering recession if it lowers inflation, amid fresh warnings

Jeremy Hunt is comfortable with the UK entering a recession due to interest hikes as long as it brings down inflation, despite warnings of an economic downturn, sources said 🔴 ChaplainChloe, RichardVaughan1 and CallumCMason report

Richard Murphy, professor of accounting practice at Sheffield University and tax campaigner, said the Bank should reduce interest rates by one percentage point– warning of “real stress” to the economy.

“We need to stimulate the economy rather than try and slow it. This is the moment to say enough is enough. Inflation is already going down and that will continue even if we drop rates. There’s no reason to consider upping them again as far as I can see. “Firstly that’s because it takes up to 18 months for rate increases to take effect, so what we’ve seen so far is already going to build enormous financial pressure. Secondly, the main reason for inflation being so high was supply chain issues. These will continue to ease naturally and upping rates isn’t going to change that.”

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