LONDON (Reuters) – Former Bank of England governor Mark Carney criticized the new British government’s plan to cut taxes for under-cutting the attempts of the central bank to curb inflation and sowing chaos in financial markets.
“Unfortunately having a partial budget, in these circumstances – tough global economy, tough financial market position, working at cross-purposes with the Bank – has led to quite dramatic moves in financial markets,” Carney told the BBC in an interview broadcast on Thursday.
Last week, finance minister Kwasi Kwarteng doubled down on promises of tax cuts by Prime Minister Liz Truss by announcing further reductions in taxation without detailing the impact on the public finances or detailing his economic growth plans.
The pound sank and British government bond yields soared, forcing the BoE to revive its bond-buying programme in an emergency move on Wednesday to shore up pension funds.
(Writing by William Schomberg; Editing by Kate Holton)
