Sir Mark Carney, who preceded Andrew Bailey as Bank of England governor, today accused the UK government of “undercutting” the UK’s economic institutions.
“Unfortunately having a partial budget, in these circumstances – tough global economy, tough financial market position, working at cross-purposes with the Bank – has led to quite dramatic moves in financial markets,” he told the BBC.
Carney also took a swipe at the lack of scrutiny the Mini Budget went through before being announced to the public.
“There was an undercutting of some of the institutions that underpin the overall approach – not having an OBR forecast. [from the fiscal watchdog, the Office for Budget Responsibility]. It’s important to have [the mini-budget] subject to independent and dare I say expert scrutiny.
“The message of financial markets is that there is a limit to unfunded spending and unfunded tax cuts in this environment and the price of those is much higher borrowing costs for the government and mortgage holders and borrowers up and down the country.”