Jacob Rees-Mogg has accused the Bank of England of “miserable incompetence” over its failure to reduce inflation more quickly and its bond-selling strategy, as rightwing Tories prepare to renew their attacks on the Bank’s independence.
Rees-Mogg said: “Quantitative tightening is not part of the Bank’s independent monetary strategy. It is a joint policy between it and the government funded by tax. This year it could cost £46bn because the Bank has failed again. Relations between the Bank and the right of the Tory party have been fractious since Liz Truss’s short tenure in Downing Street, during whichMany Conservatives have criticised the Bank for not raising interest rates more quickly, a decision they said had led to monetary policymakers having to keep them higher for longer than in other countries. The Bank decided last week to
On Tuesday members of Conservative Way Forward will call for a review into the Bank’s independence as part of a report that focuses on the losses made by the Bank’s quantitative tightening policy.