Liz Truss and Bank of England in war of words over who is responsible for market chaos

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The Bank of England says that tax cuts and increased state spending have led to an expectation of higher inflation and probable rises in interest rates

Speaking at Prime Minister’s Questions, Liz Truss said: “We are seeing interest rates rising globally, they are rising globally in the face of Putin’s appalling war in Ukraine.”: “It’s to do with the increasing differential between UK interest rates and US interest rates. And that happened before the Chancellor stood up to speak. That is what really determines currency movements – differentials in interest rate.

He also hit out at the Office for Budget Responsibility , the UK’s fiscal watchdog, saying: “let’s see what the Office for Budget Responsibility has to say rather than guessing what it may say. But its record of forecasting accurately hasn’t been enormously good. So, the job of Chancellors is to make decisions in the round rather than to assume that there is any individual forecaster who will hit the nail on the head.

 

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