The Prime Minister of the day “should be able to fire the governor of the Bank of England”, Lord David Frost has said.
The Conservative peer, speaking at a Centre for Policy Studies event at Conservative Party Conference, said: “It’s probably a very controversial thing but I think the Prime Minister should be able to fire the governor of the Bank of England.”
“It is extraordinary to me that he or she can’t.”
He also said that his party was engaged in a debate about the way forward.
“There is a debate going on, clearly, between the true believers in markets and the kind of Joseph Chamberlain version of conservatism,” he said.
“I personally hope the first one wins because the track record for that is much better in terms of delivering growth.”
Asked about the current Bank leadership, he stopped short of criticising governor Andrew Bailey directly but said: “I do think there has been a contrast between the first decade or so and subsequent decade.”
“The Bank is in need or will be in need of somebody who is intellectually in command of the arguments and has confidence in the City, among politicians, that it arguably lacks at the moment.”