Treasury Advisers Worry the Bank of England May Overdo Inflation Fight
- Most on advisory panel think rate hikes must slow, people say
- Investors are betting on another rate increase next week
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Advisers to Chancellor of the Exchequer Jeremy Hunt are increasingly concerned that the Bank of England risks raising interest rates too much in the coming months, potentially pushing the UK into an unnecessary recession.
A majority of Hunt’s seven-member Economic Advisory Council believes that the bank should slow its fastest cycle of rate increases in three decades, according to people familiar with the discussions. That view is being taken by seriously by top Treasury officials in the wake of better-than-expected inflation figures and other data that suggest a broader slowdown, said the people, who asked not to be named discussing internal deliberations.