Liam Halligan has claimed that Liz Truss was ‘ousted’ by the Bank of England, following her six week tenure as Prime Minister.
Speaking on Farage, the GB News Economics and Business Editor said that the former Tory leader was effectively removed from the role to make way for her successor, Rishi Sunak.
Halligan said: “She said the reason my policies failed is because even though I was elected off the back of them by the Tory faithful, there was massive pushback from the blob, from over powerful administrators, from lefty bureaucrats, as she put it. I mean, she looked at the economics editor of the BBC in the eye and said you are part of the problem, Faisal, because you are asking me questions like that, endless questions. Will you apologise? Will you apologise?
“I asked her about this and she was a little bit reticent maybe to go there because this is these are really deep waters. Did the Bank of England effectively oust her by doing things that undermine the gilts market in the run to a mini budget and then doing things which strengthen the gilts market and therefore mortgage rates, when you know her nicey nicey adults in the room successors Rishi Sunak and Jeremy Hunt came in, and I think that the Bank of England did do that and that's what the record shows.”
Halligan continued: “The Bank of England did something called quantitative tightening in the days before the mini budget, which basically means they throw billions of pounds worth of gilts or government IOU's at the market. Which of course makes it harder if a politician is saying we are going to borrow a certain amount of money.
“And then when Truss was out the door, they then reversed that and did something which supported the market, so it made it made it look as if traders were euphoric when Sunak and Hunt came in. And yet still rates are now higher. Mortgage rates are now much higher than at the height of her mini budget.”
Watch the discussion in full above.
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