Government Borrowing Leads to Inflation, UK’s Sunak Says

Prime Minister Rishi Sunak delivers a speech during a reception for world leaders, business figures, environmentalists, and NGOs, hosted by King Charles III ahead of the Cop27 Summit at Buckingham Palace, London, on Nov. 4, 2022. Jonathan Brady/PA Media

The government “cannot do everything” because big government borrowing ultimately leads to soaring inflation and high interest rates, the UK’s Prime Minister Rishi Sunak said on Friday.

It comes after the Bank of England raised its base interest rate to 3 percent and forecasted a two-year recession.