Bank governor wades into row over Reeves’ focus on fiscal rule forecasts

Andrew Bailey says OBR projections - which the chancellor uses to calculate headroom - shouldn't be over-interpreted'

The Bank of England governor, Andrew Bailey, has waded into the controversy over Rachel Reeves's fiscal rules with a warning against over-interpreting" the Office for Budget Responsibility's forecasts.

The chancellor announced spending cuts in her spring statement in March to rebuild headroom of 9.9bn against her fiscal rules based on projections from the OBR.