The Bank of England’s chief economist said the country’s economy could benefit if “other institutions” respected Britain’s institutional framework in recent weeks.
Hugh Peel made a comment and also praised the cooperation between the central bank and Office of National Statistics (ONS) during a speech in London.
This happened a few days after the deputy head of the bank, Sir John Cunliffe told deputies what Govt failed to brief the bank fully on his mini-budget and broad tax-cutting plans before it was unveiled.
Subsequent fears about the large borrowing needed for the mini-budget fueled a sell-off in the bond market and sent the pound to a record low against the dollar.
The financial turmoil led to the appointment of Jeremy Hunt as chancellor, who outlined plans to reverse many policy decisions from the mini-budget.
Mr Peel said on Tuesday that the Government and other institutions should learn from the Bank’s relationship with the ONS.
“This is a model of how British macropoliticians should respect the institutional framework when they interact with each other,” he said.
“In my opinion, we could have won in the last weeks if the interaction between the other institutions had gone according to this pattern.”
The chief economist is one of nine members of the Bank’s Monetary Policy Committee, which will meet next week to decide on the latest interest rate decision.
The meeting comes days after the government is due to unveil its latest fiscal plan on October 31, although it remains to be seen whether Rishi Sunak’s appointment as prime minister may affect this time.
On Monday, the Bank of England’s deputy governor, Sir Dave Ramsden, said the central bank was “talking” to the Treasury about a potential financial event.
Mr Ramsden also told MPs on the Finance Committee that the recent improvement in gold yields showed confidence in UK economic policy was returning.
https://www.standard.co.uk/business/business-news/bank-of-england-economist-criticises-other-institutions-over-cooperation-b1035036.html
