Finance Minister Jeremy Hunt says the UK now has no 'alternative' way but to raise interest rates to lower inflation.
The comments followed the release of economic data which showed the UK returned to growth in April after contracting in March.
The chancellor said the government will not give up on supporting the central bank to do what is necessary to combat high inflation.
In the most aggressive tightening cycle in decades, the central bank has raised interest rates from 0.1% in December 2021 to 4.5%.
Financial markets now expect another hike of at least 25 basis points at the next meeting next Thursday (June 22) and suggest that rates will peak above 5.5% before Christmas.
Rishi Sunak's government is now under increasing pressure due to the blow to millions of households due to higher borrowing costs.
The prime minister pledged in January to halve the UK's annual inflation rate by the end of the year, but economists say his target is increasingly risky as inflation remains high.
