Ex-BoE boss Carney says UK tax cuts under-cutting BoE inflation fight

Ex-BoE boss Carney says UK tax cuts under-cutting BoE inflation fight By Reuters

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Economy 6 minutes ago (Sep 29, 2022 02:36AM ET)

(C) Reuters. FILE PHOTO: A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska/

LONDON (Reuters) – Former Bank of England governor Mark Carney criticized the new British government’s plan to cut taxes for under-cutting the attempts of the central bank to curb inflation and sowing chaos in financial markets.

“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,” Carney told the BBC in an interview broadcast on Thursday.

Last week, finance minister Kwasi Kwarteng doubled down on promises of tax cuts by Prime Minister Liz Truss by announcing further reductions in taxation without detailing the impact on the public finances or detailing his economic growth plans.

The pound sank and British government bond yields soared, forcing the BoE to revive its bond-buying programme in an emergency move on Wednesday to shore up pension funds.

Ex-BoE boss Carney says UK tax cuts under-cutting BoE inflation fight

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