Economics

Bank of England and Sunak Set to Step Up Fight Against Inflation

  • Treasury signals backing for bigger interest rate hikes
  • Boris Johnson warns of a more difficult period to come
The Bank of England (BOE) in the City of London.Photographer: Hollie Adams/Bloomberg
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Britain’s policy makers are hardening their attitude toward inflation, preparing to deliver a tough dose of medicine at a time when a cost-of-living crisis is weighing down growth and consumers.

Prime Minister Boris Johnson’s government along with the Bank of England this week signaled a readiness to raise interest rates at an unprecedented pace to rein in prices, which are on track to leap more than 11% this year.