Former pensions minister savages Mark Carney over bank boss’s ‘FAILED monetary experiment’


The pensions expert attacked the Bank of England”s monetary policy, claiming Carney”s decision to reduce interest rates has ravaged the pockets of savers and pensioners.

Talking on Newsnight, Baroness Altmann: “I do feel that this policy of continually pushing interest rates down, printing new money to buy Government bonds, has ignored very damaging side effects that that policy itself has.

“It”s one thing trying to introduce an emergency experiment when we were facing some kind of depression, as we seemed possibly to be around 2008-2009.

“But this policy is still going on now where we have record levels of employment, record jobs, we do have growth, and therefore you have to ask yourself “is this really the right way to be running policy?’, especially when much of the impact is now hurting significant groups in the economy.”

She pointed out that savers, pensioners and small businesses have been hit the most by the current policy.

The 60-year-old added that the low interest rates imposed by the Bank of England could have a deflationary effect on the economy – claiming Carney”s policy was making rich people richer while the poor are getting poorer.

Baroness Altmann added: “One of the intentions of quantity easing is to push up asset prices, including house prices.

“But housing wealth is very unevenly distributed. Young people can”t get on the housing ladder, and it costs more to rent the house.”

Her scathing attack on Carney”s monetary policy echoed former Tory leader William Hague”s comments published in the Telegraph, where he argued that central banks cutting interest rates across the world was helping to produce “very dangerous side effects”.

However technocrat Adam Posen, who was part of the Bank of England monetary policy committee from 2009-2012, defended Carney”s choice of policy – stating the Government has numerous ways to influence the economy.

Posen said: “It”s not that the central banks have lost the plot, it”s we have moved from Henry IIII to Henry V.

“There is supposed to be a new central character, with central banks merely in a supporting role now.”