Markets
Liz Truss’s Plan for BOE Seen as Threat to Pound and UK Bonds
- Investors and economists say money supply targets don’t work
- Central bank has become a lightning rod in leadership contest
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Liz Truss’s thoughts about how to manage the Bank of England are adding to a mounting list of threats to the value of the pound and UK government bonds.
The foreign secretary, who is leading in the race to replace Boris Johnson as prime minister, has stepped up calls for a review the central bank’s remit and potentially a new money supply target. While the remarks have been vague, analysts and investors are giving more thought to a risk that’s not yet priced into the market.