The former Chief Economist at Bank of England accused it of mismanaging UK’s economy amid high inflation.
Andy Haldane, who left his role at the Bank of England last summer, said his former employer should have acted sooner to curb inflation which is at its highest level for 40 years. The comments come amid warnings from the central bank that the UK is on the brink of a recession with inflation expected to top 10 per cent this year.
” Acting earlier would have prevented the need to tighten as much inflation control now,” Haldane said to the Telegraph.
Haldane urged for price controls in the first quarter of last year. However, he claims that he was denied by his colleagues because they believed cost rises would only be temporary.
He told The Telegraph that as resurgent consumer pressured against constrained supply it seemed more probable than not that they’d experience something like we hadn’t seen in many decades.
” I’m not the right person to ask why they did it wrong .”
The central bank was forced to act to stem the spiralling price rises. The rate of interest rose from 0.1% to 1. 75 per cent this week, their highest level since 2009 and the fourth consecutive rate hike since December.
Haldane was considered for the top job at the Bank of England in 2020 but lost out to the current governor Andrew Bailey.