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U.K. Treasury Releases Rare Details Of Chancellor’s Call With BOE

The Treasury said the officials discussed the BOE’s dire forecasts for the U.K. economy.

U.K. Treasury Releases Rare Details Of Chancellor’s Call With BOE

Chancellor of the Exchequer Nadhim Zahawi spoke with Bank of England Governor Andrew Bailey on Thursday to discuss the bank’s plan to bear down on inflation, according to a rare public readout of a call between the two guardians of the UK economy.

The Treasury said the officials discussed the BOE’s dire forecasts for the UK economy, which have inflation peaking at 13.3% later this year and anticipate the economy entering a lengthly recession starting in the fourth quarter. Alongside the predictions, the BOE also announced the biggest hike in interest rates since 1995.

Read More: BOE Raises Rates by Most Since 1995, Warns of Long Recession (3)

While the BOE governor and chancellor talk routinely, it’s rare for either side to go into detail about what was discussed -- or even say when the encounters happen. 

The unusual statement comes at a time of heightened political scrutiny of the bank, which is facing accusations that it has moved too slowly in the face of rampant inflation. A number of candidates to replace Boris Johnson as UK prime minister criticized the institution during televised debates last month.

Liz Truss, the front runner who is leading in polls, has said she will consider changing the BOE’s mandate.

The Treasury statement said the chancellor and governor “noted the economic impact of Russia’s unprovoked and illegal invasion of Ukraine on global energy prices, which is the primary driver of inflation.”

They also “discussed the actions they are taking to bear down on inflation and overcome the economic challenges we face.”

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