The deputy governor of the Bank of England said that he was “engaging” with the Treasury about the financial event, which is expected on October 31.
Sir Dave Ramsden was speaking to MPs on the Finance Committee on Monday afternoon when he was asked whether the bank had been told about the reports.
He said: “Yes, we have. We haven’t started the Monetary Policy Committee (MPC) round yet, which is one of the reasons why I can be here, but we have started to make a forecast and are already engaging with the Treasury staff, who in turn interact with the Office for Budget Responsibility on the elements that will be included in the announcement on October 31.
“A particularly important thing that I have highlighted, and Sir John Cunliffe (the bank’s deputy head of financial stability) highlighted last week, is what the new energy price guarantee will look like.”
New Chancellor Jeremy Hunt said last week that energy support for households would end in six months and be replaced by more targeted support.
Mr Hunt also reversed a number of other announcements from predecessor Kwasi Kwarteng’s mini-budget after he sparked a sell-off in government bonds, known as gilts.
However, gold yields declined as a large portion of the mini-budget was returned.
Read more:
Ed Conway: Don’t expect the UK hedge fund’s first premiership to be smooth or pleasant
Rishi Sunak vs Keir Starmer: How do they rate in voters’ eyes?
Sir Dave said: “You could argue that we’re pretty close to a round trip in what has been a pretty turbulent couple of weeks.
“We are almost back to where we started after the MPC announcement in September.
“There is an old saying that trust is hard to win and easy to lose; that trust is restored.
“This needs to be done, and it would be important to return to stability around policy development and the framing of financial events.”
The Bank of England’s MPC will meet on November 3, when it will announce its latest interest rate changes and provide an outlook for the economy.
https://news.sky.com/story/bank-of-england-engaging-with-treasury-ahead-of-chancellors-statement-12729351
