UK finance minister confident Britain can overcome economic challenges

·1-min read
British Chancellor of the Exchequer and Conservative leadership candidate Nadhim Zahawi leaves a television studio in London

LONDON (Reuters) -British finance minister Nadhim Zahawi said he was confident the country was taking the right actions to overcome global economic challenges, after the Bank of England hiked rates and warned inflation would top 13%.

"Along with many other countries the UK is facing global economic challenges and I know that these forecasts will be concerning for many people," he said in a statement.

"I'm confident that the action we are taking means we can also overcome these global challenges."

The Bank of England raised interest rates by the most in 27 years on Thursday, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%.

"Addressing the cost of living is a top priority and we have been taking action to support people through these tough times," Zahawi said in an emailed statement.

"We are also taking important steps to get inflation under control through strong, independent monetary policy, responsible tax and spending decisions, and reforms to boost our productivity and growth."

(Reporting by Muvija M, writing by William James; Editing by Kate Holton)

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