In a scathing criticism of the central bank, Price, also a director of PFP Wealth Management, has claimed the combination of quantitative easing and rock-bottom interest rates has inflated asset prices across the board and that it is “the real public enemy number one”.
The decisions made by the Monetary Policy Committee (MPC) have led directly to rising property prices, the soaring FTSE and “dangerously overpriced” gilts, he said, and allowed the government to spend without consequence.
However, the debate has focused entirely on the government and its supposed austerity policies.
“The way I look at it is there is a debate going on about inequality, but the elephant in the room is the MPC, they are unelected, they are no better at predicting inflation than anyone else,” Price said.
He added: “A cynic would say it’s a secret way of financing the deficit.”
Price has called for reform of the bank and for it to ditch its commitment to QE.
He also suggested rates should be set by the markets as “we let them decide the price of everything else”.
“I think the whole thing is a disgrace, but what concerns me is there’s no debate about the efficacy of the Bank of England. The idea that it is independent is nonsensical. We do not let the government set any prices, so why do we let what is essentially an arm of government do it?
“I accept its economically sensitive, but it’s even more sensitive when it’s managed by an unelected committee.
“It is nothing like free market capitalism, it is socialism for the rich.”
It has made the job of wealth managers to find good value investments almost impossible, Price claimed, as historic low interest rates mean there is no longer such a thing as low risk assets.
“All roads lead to the Bank of England as far as I’m concerned,” Price concluded.
