Autumn Budget set to be 'acid test' for government and BoE relations under Sunak

'A fine balancing act'

Valeria Martinez
clock • 4 min read

Relationships between Number 10 and the Bank of England are expected to be more cordial under Rishi Sunak, but the extent of that alignment and the future path for interest rates will be determined by next month's Autumn Budget.

Since Liz Truss took office on 5 September and the Mini Budget was revealed two weeks later, the Bank of England has been at a crossroads, with several City figures describing the situation as an "economic tug-of-war" between the government and the central bank.  While Truss' administration was pursuing a pro-growth agenda fuelled by a £45bn tax cuts package and significant expenditure, the Bank was pushing for the opposite to bring inflation back on target.  Under a Rishi Sunak government, industry experts told Investment Week that they expect a much less febrile relationship between...

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