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Inflation Will Be In Control, Says Nadhim Zahawi

Zahawi will vow in his first speech in his current job as Chancellor of the Exchequer in London to control inflation, boost private sector recovery, and develop a post-Brexit financial services policy, the finance ministry said

Photo Credit : Reuters

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London is going too far in deregulation in light of fears that the city will seize the opportunities of Brexit to combat inflation, a lackadaisical approach to financial regulation would be a mistake, according to the new Chancellor of the Exchequer.

Johnson's departure from office in addition to other government figures has led to a bitter competition to become the next leader. 

Zahawi will vow in his first speech in his current job as Chancellor of the Exchequer in London to control inflation, boost private sector recovery, and develop a post-Brexit financial services policy, the finance ministry said. 

Despite fears that London may be going too far in deregulation, Nadhim Zahawi, the UK Finance Minister, will outline his approach for tackling inflation and 'seizing Brexit opportunities', he said in his speech. 

Sunak, Zahawi's predecessor, adhered to the same belief as Zahawi—that deregulation of the 1980s would lead to a new 'big bang' in the finance sector. 

The government's statements are fuelling concerns of a conflict with the Bank of England, while some media outlets report that the government wishes to lessen down the regulators' authority. 

In response to accusations that the Bank of England was too timid in combating inflation, officials including governor Andrew Bailey defended the institution's independence. 

In May, inflation reached a 40-year high of 9.1 per cent in the UK, and it looks as if it will hit double digits this year. 

It is important to maintain the UK's strict regulatory standards in order to preserve the country's financial stability and maintain worldwide confidence in the financial system, a parliamentary report said in June. 


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inflation finance ministry united kingdom Nadim Zahawi