When the putative next chancellor of the Exchequer in a Liz Truss-led government, Kwasi Kwarteng, attacks the Bank of England for its record on inflation, there is reason to be fearful for the economic future of the nation.
Mr Kwarteng says that if the Bank’s inflation target is 2 per cent, and the rate is headed towards 13 per cent or more, then “something has clearly gone wrong”. Other allies in the Truss camp argue the Bank should have put interest rates up a year ago or more, and it neglected its responsibilities. It is a ludicrous stance, and if Mr Kwarteng means it – as opposed to just politicking – then he is ill-equipped to be placed in charge of the Treasury.
As the Bank’s governor, Andrew Bailey, has tried to explain, the reason why inflation is so high can be summed up in one word: “Putin.”