The Chancellor told the Treasury select committee he was not concerned about the current weakness of the pound. Sterling has slumped against the dollar and euro over recent months – but Mr Sunak insisted to MPs: “I have confidence in the medium-term outlook for the economy. “In the short term, obviously we are experiencing high inflation, we are not alone in that – although what is happening here is predominantly due to global shocks, it is not exclusively.”
Mr Sunak said the high price of energy and inflation expectations were being watched carefully.
And he added: “I am confident we have the tools and the determination to get inflation down over time – whether that is fiscal policy, strong independent monetary policy or supply-side reform.
“Those three tools will reduce inflation over time and I want people to be reassured that this is the case. And in the short term, I think the support we have provided will make a meaningful difference.” Mr Sunak hit back at criticism that the recently announced cost-of-living package would further fuel inflation.
The…
