Rishi Sunak accused of wasting £11bn on government debt blunder

Ggood morning.

A leading economics research group has pointed the finger at Rishi Sunak for wasting £11 billion in taxpayers’ money.

The National Institute of Economic and Social Research said the chancellor was caught a year ago failing to insure against higher interest rates on £895bn worth of money created by quantitative easing.

Niesr director Jagjit Chadha said Mr Sunak’s decisions had left the UK with “a huge bill and heavy lingering exposure to interest rate risk”, adding that it was the Treasury’s fault.

The losses, reported by the Financial Times, will give the chancellor another headache as he comes under scrutiny over his response to the cost of living crisis.

The Treasury said: “We have a clear funding strategy to meet government funding needs, which we have established independently of the Bank of England’s monetary policy decisions.”

5 things to start your day with

1) Steak shortages loom as fertilizer prices skyrocket: Prices have already fallen by 5 pc. up over the year, but are now forecast to go through the roof.

2) Asia’s richest man makes £5bn offer for Boots: Mukesh Ambani already owns the English country club Stoke Park in Buckinghamshire and the toy store Hamleys.

3) Christine Lagarde signals the end of the era of negative interest rates in the eurozone: European interest rates are expected to rise for the first time since 2011 from their current level of -0.5 pc.

4) Swedish sex toy maker abandons plans for £1 billion in London: Lelo will instead look for a buyer and blame the volatility of the market.

5) Deloitte denies not having protected ex-employee against bullying: Former employee says she now has mental health problems after ‘harassment’.

What happened overnight?

Hong Kong stocks opened sharply lower this morning, with the Hang Seng index falling 1.6 percent.

The Shanghai Composite Index fell 0.8 percent and the Shenzhen Composite Index on China’s second exchange fell 0.6 percent.

Tokyo stocks opened lower and the benchmark Nikkei 225 index fell 1pc.

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