UK Finance Minister Zahawi: We need to be really careful about public sector pay and fuelling inflation

The newly appointed UK finance minister Nadhim Zahawi said on Wednesday that “we need to be really careful about public sector pay and fuelling inflation,” when asked about inflation and wage growth.

Key quotes

Asked about the corporation tax cut, he said, “I will look at everything to make sure we continue to be on the side of people.”

“Wrong to indulge in infighting.”

“We need to be fiscally responsible.”

“Nothing is off the table.”

“We have to work with BOE to make sure monetary policy is right.”

On energy prices, “We have to make sure we have an energy strategy that allows us to invest in nuclear.”

“On fuel duty: “I will look at everything.”

“Tax cuts amongst most important things to do.”

“I’ve got to make sure I deliver for those who are hard-pressed, and bring inflation under control.”

Market reaction

GBP/USD remains under pressure at around 1.1925, unfazed by the above comments. The pair is losing 0.26% on the day.