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Former BOE Rate Setter Says Truss’s Tax Cut Plan ‘Risky’ for UK

July 26, 2022, 8:35 AM

A former Bank of England policy maker said the tax cuts envisioned by UK Foreign Secretary Liz Truss would be risky for the economy and fan inflation.

DeAnne Julius, who served on the central bank’s Monetary Policy Committee from 1997 to 2001, said now is not the time for big moves in fiscal policy. Truss has pledged an immediate tax cut if she wins the race to succeed Boris Johnson as prime minister.

“The economy is in a precarious position,” Julius said on BBC Radio 4’s “Today” program “Inflation is way above target. We’re already seeing the beginning of ...