Jacob Rees-Mogg denounces the Bank of England’s “credibility” in the face of soaring interest rates | Politics | New

Jacob Rees-Mogg hit back at the Bank of England on ITV’s Peston on Wednesday after Governor Andrew Bailey’s comments on September’s controversial mini budget. Mr Bailey told the group of Treasury Committee MPs that the fallout had ‘damaged our international reputation’ and that it would take ‘longer to rebuild that reputation than to fix the gilding curve’.

Mr Rees-Mogg was in government at the time and jumped in to defend the Liz Truss cabinet.

When host Robert Peston asked him what he thought of the Governor’s comments, he replied, “Motes and beams.

“It seems to me that the Bank of England should pull the beam out of its own eye before it pulls the speck out of the government’s eye.”

The Tory MP was referring to the biblical parable of the straw and the beam, which warns of the dangers of judging others when you can also be judged by the same standards.

He continued: ‘The Bank of England was told by Andy Haldane over a year ago that it needed to start raising interest rates, other people were warning of inflation and Bank sat idly by.

“The Bank then failed to raise interest rates to the same rate as the Federal Reserve, it presided over a 21% increase in the money supply from 2019.

“He is now offering explanations for inflation that ignore the increase in the money supply over which he presided.

READ MORE: ‘Difficult times for Britain on the road to recovery’

By raising interest rates, it is hoped that inflation can be brought down to 2% as borrowing will be more expensive and economic activity will be depressed.

The Monetary Policy Committee said interest rates had also soared due to the impact of Brexit.

Dr Catherine Mann said that due to less competition from European markets, prices have risen across the board.

Leslie M. Gill