Autumn Budget an 'acid test' for government/BoE relations under Sunak

A look at what next month's Budget may bring for the City

Valeria Martinez
clock • 4 min read

Relationships between Number 10 and the Bank of England (BoE) are expected to be more cordial under Rishi Sunak, Valeria Martinez writes. But the extent of that alignment and the future path for interest rates will be determined by next month's Autumn Budget.

Since former prime minister Liz Truss took office on 5 September and the Mini Budget was revealed two weeks later, the BoE have been at a crossroads, with several City figures describing the situation as an "economic tug-of-war" between the government and the central bank.  While Truss' administration was pursuing a pro-growth agenda fuelled by a £45bn tax cuts package and significant expenditure, the Bank was pushing for the opposite to bring inflation back on target.  Under a Rishi Sunak government, industry experts tell Professional Adviser's sister title Investment Week that they ...

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