Jacob Rees-Mogg is right: the Bank of England is a massive threat to our well-being

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The Guardian has reported this morning that:

Jacob Rees-Mogg has accused the Bank of England of “miserable incompetence” over its failure to reduce inflation more quickly and its bond-selling strategy, as rightwing Tories prepare to renew their attacks on the Bank's independence.

The former business secretary accused the Bank of damaging the economy with its interest rate decisions and costing the taxpayer tens of billions of pounds by selling off government debt too quickly in an attempt to reduce its balance sheet – a policy known as quantitative tightening (QT).

I hate to say it, but he's right.

He's also right to suggest that, incompetent and bizarre as Lis Truss's budget in September 2022 was, it was the Bank of England that caused the financial crisis during the weekend that followed it, with its announcement of unprecedented QT, which failed to take into account its impact on pension funds.

Dire as Tory economy management has been - and dire is in many ways too kind a word to describe it - the Bank of England has been much worse.

I don't agree with Jacob Rees-Mogg on almost anything else, but on this issue, he is right. The Bank of England, as it now operates, with its current leadership, is the most massive threat to our well-being, with Labour ranking as the second biggest threat because it says it has no intention of changing the way in which the Bank operates so that life might be made better for the vast majority of people living in the UK.

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