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

Andrew Bailey told the Lords economic affairs committee there were risks in being constantly focused on a number. Photograph: Alastair Grant/AP

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.