But in a Sunday Telegraph interview Mr. Chote warned: “A sane government will not just see how good it is for governments to borrow today [but] what difficulties will be created if they become more expensive. ”
The OBR will issue its latest verdict on the long-term health of public finances on July 14. He will outline the outlook for the UK on the basis of a rapid recovery, a slower rebound with economic damage and the worst case scenario where the epidemic leaves deep economic scars.
Mr. Chote added: “We argued in the last fiscal risk report that public finances are more vulnerable to bad surprises in interest rates and inflation than they were because the debt stock is larger, but also due to quantitative factors. easing, which means that more of it was essentially refinanced at the Bank rate. “