The National Institute of Economic and Social Research think-tank has accused Rishi Sunak of wasting £11 billion of taxpayers’ money by poorly managing the government’s debt payments.
An influential economics think-tank has accusedof wasting £11 billion of taxpayers’ money by poorly managing the government’s debt payments.
This helps keep inflation stable and fuels the engines of the economy by keeping borrowing costs down for families, businesses and the government. Those costs arise from interest the Bank must pay to its account holders, which goes up when investors on the other end of QE payments deposit the proceeds in their accounts.
The think-tank’s director, Professor Jagjit Chadha, says the rise was foreseeable as there were early signs that inflation would go up in the following months. Mr Sunak himself warned more than 18 months ago that the UK’s finances were ‘exposed’ to rises in inflation on the horizon.
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