Chancellor George Osborne has pressed for the Bank of England to further loosen monetary policy, in a highly unusual intervention ahead of today’s monthly rate-setting meeting.
Osborne’s handling of the economy has become a sticking point for many in his own party, who are said to have called for his sacking if the March budget doesn’t break out of recent stagnation.
Osborne argued that attempt by the government to reduce the deficit ‘mean that… monetary policy action by the BoE can and should continue to support the economy,’ reported the Financial Times.
His comments came at the launch of an Organisation for Economic Co-operation and Development report on the UK economy, which also argued for further liquidity provision.
Incoming BoE governor Mark Carney, who will take over from Mervyn King later this year, will also face a grilling by the Treasury Select Committee later today.