Tory MP calls for an investigation into the Bank of England after they “comprehensively underestimated the inflationary threat.”

The Bank of England, which was established independent of the government by Gordon Brown, has been slammed by a former senior cabinet member for failing to grasp the danger presented to the British economy. 

At the same time, Chancellor Rishi Sunak has appointed another anti-Brexit economist to the bank’s board, further aggravating his Tory MP colleagues. 

A 0.1% drop in GDP has rattled the Treasury, raising fears that the United Kingdom is headed for a recession. 

Despite a record 54 percent increase in energy prices, inflation in the United Kingdom rose to 7% in the previous month and is expected to rise significantly further.

During a speech before Parliament, Dr Fox lambasted the Bank of England for failing in its responsibility to manage the nation’s finances. 

He said: “It is almost universally accepted that the first duty of Government is the protection of its citizens. As a former Defence Secretary, I am only too aware of the many external threats to the safety of our people and our country, but there are other threats that I believe we have a right to be protected from: the debasement of our currency, the erosion of our earnings and the devaluation of our savings.

“I believe it is fundamentally wrong for Governments to engage in structural profligacy, spending excessively across the economic cycle and passing ever-larger amounts of debt on to the next generation.”

He went on: “I also believe it is the duty of central banks to safeguard the value of our money and our savings. 

The Bank of England persisted beyond any rational interpretation of the data to tell us that inflation was transient, thenthat it would peak at 5 percent. It has consistently underestimated the threat.”

That was not the end of it: “There are three things I would like to see.” 

“First, the Treasury Committee should launch an investigation into why the Bank of England so comprehensively underestimated the inflationary threat; secondly, the monetary policy report should go back to being the inflation reportand thirdly, the Government should think about what guidance might be given to the Bank of England on considering and reporting monetary stability.” 

Chancellor Rishi Sunak has recruited an outspoken foe of Brexit as one of his main policymakers, angering many Conservative MPs. 

Swati Dhingra, an associate professor of economics at the London School of Economics, has been selected by Mr Sunak to join the Bank’s rate-setting Monetary Policy Committee (MPC). 

Many people want the government to select pro-Brexit candidates to sit on the board of the Bank of England instead, in the hopes that they would help make Brexit a success.