Top Tories attack Bank of England over ‘consistent’ inflation failures

Good morning. 

The Bank of England is facing an escalating political row after a top Tory MP attacked the central bank for failing to tackle inflation.

Liam Fox, former defence secretary said the Bank had “consistently” misjudged the danger of soaring prices and called for an investigation into the matter.

He said: “It is the duty of central banks to safeguard the value of our money and our savings. The Bank of England persisted beyond any rational interpretation of the data to tell us that inflation was transient.”

The comments threaten to pit the Tory party against Governor Andrew Bailey as the cost-of-living crisis deepens.

The Bank of England has been forced to aggressively raise interest rates and has warned inflation will top 10pc by the end of the year.

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What happened overnight 

Asian equities were mostly up following a tumultuous trading period on Wall Street, which rebounded at the close after investors calmed down about US policies to counter surging inflation. In Asia, Hong Kong, Tokyo, Seoul, Singapore and Sydney opened higher, while Wellington traded in the negatives.

Coming up today

  • Corporate: ContourGlobal, Sage Group (interims)
  • Economics: Industrial production (EU), Michigan Consumer Sentiment Index (US)

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