Bank of England Inflation Fight and Truss Tax Cuts Are at Odds, Worrying Investors

This year, Andrew Bailey, the head of the Bank of England, had one of the toughest jobs in central banking. The energy price shock from the war in Ukraine and US-style labor shortages have pushed UK inflation to the highest rate of the big rich countries.

Now his job of fighting inflation has become even more difficult after the new Prime Minister’s government Liz Truss It unveiled the biggest tax cuts in a generation and a bailout package for consumers and businesses to protect them from rising energy bills, according to former central bank officials, analysts and investors.