UK mortgage rates jump after inflation shock; retail sales rise faster than expected – business live

Retail sales across Britain rose by 0.5% in April after sliding in March, as high inflation hits the mortgage markets

UK homeowners and first-time buyers warned to brace for 5%-plus mortgage rates

Chancellor Jeremy Hunt has pledged to support the Bank of England’s decisions on interest rates, even if rising mortgage costs push the UK into a recession.

Hunt told Sky News there could be no trade-off between cutting inflation and the risk of provoking a recession, arguing that the “only path to sustainable growth” is to bring down the high prices behind the cost-of-living crisis.

“Yes, because in the end, inflation is a source of instability.”

“If we want to have prosperity, if we want to grow the economy, if we want to reduce the risk of recession, we have to support the Bank of England in the difficult decisions that they take.”

“We will deliver this task and we will make sure that the government plays its part, the Bank of England plays its part. But it is not a trade-off between tackling inflation and recession. In the end the only path to sustainable growth is to bring down inflation.”

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