Andrew Bailey should be wary of helping Labour

Business confidence has plummeted back to the levels last seen in the wake of Liz Truss’s unfortunate mini-budget. Hiring has slowed down as employers worry about all the new rights Labour is about to award their staff. Consumer confidence has fallen, as people worry about the tax rises that will be imposed in the ‘Horror Budget’ set for the end of the month. And the economy, which was growing at a decent clip when the Conservatives left office, has now stalled, with zero growth in the latest quarter. The new Chancellor Rachel Reeves was facing a spluttering economy. But, hey, never mind. It turns out that the Bank of England is here to help – the only problem is its Governor Andrew Bailey may come to regret that decision. 

In an interview published today, Bailey offered the Chancellor a rare piece of good news. After keeping rates on hold following a single, modest quarter-point cut earlier this year, Bailey argued there was a chance the BoE could become ‘a bit more activist’ in its approach.