The House of Lords have criticised the Treasury for producing "over-optimistic" forecasts which is making it "more difficult than it needs to be" for the Bank of England to set interest rates.
A report published today by the House of Lords Economic Affairs Committee, on ‘The Current State of Monetary Policy’ also recommends the Bank of England should carry out more research into the link between rising house prices and consumer spending. The Committee, which includes two former Chancellors - Lord Lamont and Lord Lawson, states the over optimistic growth forecasts over the last five years has led to under-estimates of the budget deficit and borrowing requirements. As a result the report argues this situation has been unhelpful in setting interest rates and suggests this may h...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
