Andrew Bailey says OBR projections – which the chancellor uses to calculate headroom – shouldn’t be ‘over-interpreted’ 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. Continue reading...