Economists are calling on the chancellor to intervene with the Bank of England over its bond-selling strategy, which they say has already drained billions from public finances. The Bank’s upcoming policy meeting will determine whether to maintain or adjust the pace of selling government bonds acquired during the 2008 financial crisis rescue efforts. With interest rates also on the agenda, the decision could have significant financial repercussions for the economy. Critics argue the current approach is placing unnecessary strain on the national budget.
Economists urge John Healey to press Bank to change policy that is costing the exchequer billions of poundsEconomists have urged the chancellor, John Healey, to press the Bank of England to slow down its bond-selling programme that has already cost the exchequer billions of pounds.The Bank’s monetary policy committee (MPC) meets this week to not only decide the level of interest rates but also whether they should freeze or slow the sale of government bonds, known as gilts, bought as part of the rescue operation after the 2008 banking crash. Continue reading...
