Bank of England ‘blindsided’ by Kwasi Kwarteng’s mini-budget, says governor

Andrew Bailey tells Lords committee of extraordinary process' with no formal communication' between Treasury and Bank

The governor of the Bank of England has indicated it was left blindsided by Kwasi Kwarteng's disastrous mini-budget, describing an extraordinary process" in which there was no formal communication" before the chancellor unveiled his measures.

In candid evidence to the Lords economic affairs committee, Andrew Bailey said Kwarteng had broken with tradition by failing to brief the central bank, suggesting that even Treasury officials were not fully aware of his plans a day before the event.