Pro-Brexit Lawmaker Says BOE, Chancellor Hampering U.K. Economy
(Bloomberg) -- The Bank of England and Chancellor of the Exchequer Philip Hammond came under renewed attack from a leading pro-Brexit lawmaker who accused them of holding back U.K. economic growth.
Former cabinet member John Redwood said measures taken by the BOE to rein in credit last year have slowed money growth, citing Financial Policy Committee warnings against too much lending for homes, cars and other consumer items. The central bank had also canceled lines of credit for clearing banks “to make it more difficult” for them to lend to others, he said, according to the Daily Express newspaper on Friday.
“There was also an interest rate rise to make borrowing a bit dearer and to remind people thinking of borrowing that the costs could go up,” Redwood said. “In the U.K. money growth is now slow. It’s no wonder the growth rate of the economy has slowed down a bit.”
The BOE cut interest rates just after the vote for Brexit in 2016. It then raised borrowing costs for the first time in a decade in November.
The chancellor’s budgets also drew criticism, with Redwood pointing to higher taxes hitting the property market and car sales.
The BOE declined to comment on the claims.
©2018 Bloomberg L.P.