Cabinet ministers have reportedly criticized the Bank of England for rising inflation and urged Rishi Sunak to do more to hold the institution’s governor, Andrew Bailey, to account.
Boris Johnson’s party is currently under pressure to help struggling families as the cost of living crisis deepens and now, in an unprecedented move, government figures are targeting the BoE for failing to contain inflation.
A senior minister said The telegraph“He has a job to do – keep inflation around 2% – and it’s hard to remember the last time he hit his target.”
Other government insiders want the Chancellor to do more to hold Mr Bailey accountable, as controlling inflation is one of the BoE’s core functions.
Currently, inflation sits at 7%, but could hit 10% later this year as the economy heads into recession, the Bank of England warned in early March.
The troubling economic outlook, cost-of-living crisis and sharp rise in inflation have upset Tory MPs and prompted unexpected criticism from the BoE, which was made independent of government in 1997.
Dr Liam Fox has called on the Treasury Committee to launch an “inquiry into why the Bank of England has so grossly underestimated the inflationary threat”.
Regarding the leveling program, he added: “If we are not able to control inflation, none of our ambitions will come true.”
Maria Miller, Conservative MP for Basingstoke, said: ‘I would say that the Government must take very seriously the words of (Dr Fox) because he is right to say that one of the levers he can pull in his response to the challenges we’re dealing with is around inflation, and it’s very much within the government’s gift to be able to make these changes to bring inflation under more control.
“I think by looking at different countries in Europe and seeing the different levels of inflation, you can see how the fiscal responses that governments have made have inherently driven these changes.
“But the cost of living issues we are facing at the moment must be first and foremost addressed by every minister, regardless of their department.”
In other developments, Sunak said he may be willing to step in on the cost of living crisis as families grapple with soaring food, energy and gas prices.
He told the Sunday Express: “The global challenges we face are constantly changing, and I have always said I stand ready to take further action as we gain more insight into the pressures we are likely to face. to face later this year.
“Rest assured, I am aware of the issues people are facing and am looking to do everything in my power to help where I can.”