Senior Tories are unimpressed by Mr.Bailey's comments (Image: Getty)

       The Bank of England governor claimed the outlook was among the worst he had seen. But MPs accused him of “pouring cold water” over everything and having a track record of being wrong with his gloomy predictions. Sir Ian Duncan Smith said:

       with his gloomy economic forecasts. One Conservative MP called on Mr Bailey to be “more of a Tigger and less of an Eeyore”.

       It came as homeowners were warned interest rates will remain high for the “foreseeable future” as the Bank chief said potential growth is at its lowest for more than four decades.

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       But Mr Bailey was told to apologise for his role in the country’s economic fortunes. Former party leader Sir Iain Duncan Smith said: “He needs to be a little more judicious with his -language and a little more apologetic about the mess they got into because of their failure to deal with interest rates early.

       “They have had to go higher and further than other countries have and that is down to his watch. So, I am sorry he should choose to pour cold water over everything.

       “The economy is in a far better state than he thought it was. It’s outperformed all his dire predictions and I believe it will spring back.”

       Another senior Tory David Jones said: “It is regrettable the -governor adds to people’s concerns by repeatedly talking the United Kingdom down. The economy has shown itself considerably more resilient than many of its competitors, not least Germany, which is likely in recession.

       “The governor needs to be more of a Tigger and less of an Eeyore.”

       Sir John Redwood said: “The Chancellor presented a brighter case for the economy only last week.

       “It’s very important the authorities help to build confidence and get behind a strategy to cut inflation and get growth up.”

       READ MORE Andrew Bailey savaged over doom-mongering and as Tories blame him ]

       Jeremy Hunt, UK chancellor of the exchequer (Image: Getty)

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       Jeremy Hunt used last week’s Autumn Statement to announce a National Insurance cut and tax breaks for businesses in an attempt to revive growth.

       But Mr Bailey raised concerns about the UK’s economic future in an interview with a regional newspaper, saying the outlook is poor. He said: “If you look at what I call the potential growth rates of the economy, there’s no doubt it’s lower than it has been in much of my working life.

       “It does concern me that the supply side of the economy has slowed. It does concern me a lot.”

       The independent Office for Budget Responsibility downgraded its growth forecasts last week to 0.7% from 1.8% for 2024. Rishi Sunak met the first of his five pledges after inflation more than halved during his premiership to sit at 4.6% in October.

       But the Bank of England’s long-term target is to keep it under 2%. Mr Bailey said that hitting that goal will be “hard work”. The -governor described it as a “game of two halves”, with falling inflation in recent months due to decreasing energy costs. He added: “I’m very conscious of the position of the less well-off but we do have to get it down to 2%.

       “That’s why I have pushed back against assumptions that we’re talking about cutting interest rates in -anything like the foreseeable future, because it’s too soon to have that discussion.”

       The Bank held interest rates for the second consecutive month at 5.25% after 14 increases in a row. It forecast inflation only returning to 2% at the end of 2025.

       But Downing Street insists the economy will keep “outperforming expectations”. The PM’s spokesman said: “We have turned a corner, particularly given the success in halving inflation.”

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       Meanwhile, peers are calling for the central bank’s remit to be “pruned” by the Treasury and warned there is a “democratic deficit” as it cannot be adequately scrutinised.

       The Lords Economic Affairs Committee report backed the continued independence of Threadneedle Street. But, after two years of inflation soaring, it raised -concerns that the Bank seemed unable to produce accurate forecasts.

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