Economic Situation

Baroness Altmann Excerpts

Thursday 13th October 2022 Lords Chamber

[Baroness Altmann (Con)]

My Lords, can my noble friend confirm that the Bank of England itself has played a role in what has been happening in the markets? Are there discussions between the Treasury and the independent Bank of England to urge it to extend, if necessary, the emergency measures that it has brought in, which are meant to expire tomorrow, to give the Chancellor an opportunity to restore confidence in the fiscal policy by 31 October with his Financial Statement and Budget Report? If this does not happen, the lack of action by the Bank of England that led to the currency turmoil the day before the mini-Budget, coupled with the loss of confidence in the Bank of England’s policy because it was about to unload £80 billion-worth of gilts in the market, will continue to unsettle the markets. The Bank of England needs to take some responsibility here.

[Viscount Younger of Leckie (Con)]

The Treasury is working with the Bank of England to monitor the implementation of the operations that the Bank has decided to undertake and the potential risks that it may pose, as well as continuing to monitor wider market conditions. It is thought that the announcements on Wednesday 28 September and the very recent ones on Monday 10 October and Tuesday 11 October will allow enough to be done. As I say, this is to settle the markets and to ensure that there is an orderly exit, as planned, from this Friday.