UK's Sunak says inflation, rates feed into budget thinking

People should have confidence in the Bank of England to manage inflation, says Sunak

  
Chancellor of the Exchequer Rishi Sunak delivers his 'Mansion House' speech at the Financial and Professional Services Address, previously known as the Bankers dinner, at Mansion House in London, Britain July 1, 2021. Stefan Rousseau/Pool via REUTERS

Chancellor of the Exchequer Rishi Sunak delivers his 'Mansion House' speech at the Financial and Professional Services Address, previously known as the Bankers dinner, at Mansion House in London, Britain July 1, 2021. Stefan Rousseau/Pool via REUTERS

LONDON: British finance minister Rishi Sunak said on Sunday that the outlook for interest rates and inflation will feed into his thinking ahead of next week's annual budget.

"Inflation, interest rates - those are two of the factors which I have to think about as I determine what's the appropriate fiscal policy, what's the right level of tax and borrowing and spending," Sunak said in an interview with Times Radio.

"Particularly because our public finances are sensitive to changes and things like inflation and interest rates, which have been very low for quite a while."

Sunak, who is due to deliver his budget on Wednesday, added that people should have confidence in the Bank of England to manage inflation.

(Reporting by Andy Bruce; Editing by Hugh Lawson) ((andy.bruce@thomsonreuters.com; +442075423484; Reuters Messaging: andy.bruce.thomsonreuters.com@reuters.net))


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