Excerpts were released over the weekend and include a scathing view of Britain’s financial establishment. She describes the Treasury, the Bank of England and the Office for Budget Responsibility (OBR) as a “three-headed hydra” that “wanted to stick as closely to EU law as possible.”
But the now-backbench MP went further in the interview, saying Bailey should no longer lead the U.K.’s central bank. She also said she would “like to see the back of the OBR” and called for an investigation into the response to her infamous “mini-budget” in Sept 2022, which resulted in the BoE having to step in to calm markets.
Asked whether she thinks Bailey should still be in his role, Truss said: “No, I don’t. I certainly think there should be a proper investigation into what happened in September 2022. And the actions the Bank of England took.”
Prime Minister Rishi Sunak has confidence in Bailey and appreciates the BoE’s efforts to bring down inflation, his official spokesperson said Monday lunchtime.
Truss was forced to resign soon after the budget, in which she announced tax cuts for Britain’s wealthiest and opted not to publish the usual economic forecasts from the OBR. Markets spiraled in the wake of the statement and the pension fund industry nearly collapsed. The BoE stepped in with a £65 billion emergency facility to restore calm.
But Truss told LBC that the reaction to her plan has been a “smear.”
