Andrew Bailey 'could be sacked' after overseeing interest rates disaster for mortgages

​Andrew Bailey

Andrew Bailey is under pressure after overseeing high inflation and high interest rates

GB News Reporter

By GB News Reporter

Published: 25/06/2023

- 15:27

Former Tory Party chairman Sir Jake Berry slammed the Bank of England Governor over ‘blobonomics'

Rishi Sunak and Jeremy Hunt should consider sacking the Governor of the Bank of England for his failrue on inflation, a senior Conservative has said.

Sir Jake Berry, the former chairman of the Conservative Party, accused Andrew Bailey of having been "asleep at the wheel" after failing to get a grip of the inflation crisis early on.

The Bank's Monetary Policy Committee (MPC) was slow to raise interest rates when inflation first started to increase for fear of harming the economy's recover post-Covid.

But there has been criticism that its failure to clamp down on the rise in prices is responsible for the prolonged high inflation now being felt across the country.

Jake Berry said the Bank of England had been 'asleep at the wheel'

GB News

Berry told GB News: "I was looking at the Bank of England's predictions just from 18 months ago, and their prediction was that inflation will be 2 per cent.

"Now it's over 8 per cent, or 10 per cent depending on some measures, like the Bank of England has been asleep at the wheel.

"The United Kingdom central bank has acted far too slowly and mortgage payers and businesses are paying the price."

Earlier this week the MPC increased the Bank of England's base rate of interest to 5 per cent, adding hundreds of pounds a year onto Britons' mortgages.

In a discussion with Camilla Tominey, Berry said: “Andrew Bailey is pursuing what I call blobonomics, which is the sort of flawed economic principles of the Treasury.

"And I think the problem he has is that every prediction that is being made is wrong.

"I think the Government should be getting him in and talking about whether he has a plan other than just ratcheting up inflation, or ratcheting up the interest rates and mortgages on households. And if he doesn't, then maybe it's time to look for someone else who's got a better plan."

He added: "I just don't think this crisis is going to be over in six months and that's why I've been calling for a reintroduction of MIRAS (mortgage interest relief at source), which is a tax cut for everyone with a mortgage, or expanding SMI beyond people just on benefits to try and help families.

"If you read in the papers today, clearly, you will have seen that there's a potential 10 per cent drop in property prices in the next 12 months predicted.

"That puts us on the brink of a financial crisis in terms of the amount of wealth that we have in this country invested in property. We absolutely have to act.

A cyclist outside the Bank of England

The Bank of England has raised rates repeatedly since the end of 2021


"I don't think the approach frankly of Andrew Bailey at the bank or the Government wait and see approach is one that is serving my constituents."

Earlier this week Bailey admitted that "with the benefit of hindsight" he had "obviously" failed to act quickly enough on inflation.

He said “all of us can learn lessons from this sorry episode”.

Despite criticism levelled at the Bank of England Governor, the Prime Minister says he continues to support him in the role.

"There is, I think, a global concern about the persistence and stickiness of inflation, and the need for central banks to take strong action to take inflation down," he told a summit on Thursday.

"The Bank of England has my support and the Government’s support to bring inflation back down to target."

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