Saturday 6 August 2022 10:25 AM Bank of England governor is slammed following doom-laden UK forecast trends now
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Business leaders and economists last night accused the Bank of England Governor Andrew Bailey of talking down Britain's prospects.
The beleaguered banker is facing a backlash over his handling of the economy.
Mr Bailey was accused of 'adding to a sense of panic' with doom-laden forecasts that Britain will endure 15 months of recession and that inflation will pass 13 per cent.
Critics said he was being too 'downbeat' at a time when the nation needs reassurance and called for 'more optimism'.
It came after Tory leadership contender Liz Truss insisted that a recession was not inevitable if the Government helped the economy grow by cutting taxes.
There has been increasing criticism that the Bank has been 'asleep at the wheel' and was too slow to increase interest rates to tame soaring inflation.
Business leaders and economists last night accused the Bank of England Governor Andrew Bailey of talking down Britain's prospects. The beleaguered banker is facing a backlash over his handling of the economy
Mr Bailey was yesterday forced to insist he will not quit early despite the mounting backlash at his position.
On Thursday, he and his colleagues on the Bank's Monetary Policy Committee (MPC) predicted inflation would hit 13.3 per cent in October and Britain would tumble into a recession lasting five quarters as they raised interest rates to 1.75 per cent.
They also forecast household income, taking into account the rise in the cost of living, will fall by the largest amount since records began in the 1960s both this year and next.
Former Tory leader Sir Iain Duncan Smith said: 'Andrew Bailey is in damage limitation mode. The Bank have got this past year badly wrong and they don't want to own up to it.