However she said she had not been warned of the risks to the bond markets from liability-driven investments (LDIs) – bought up by pension funds – which forced the Bank of England to step in to prevent them collapsing as the cost of government borrowing soared.
In the wake of the mini-budget, she complained that the government was made a “scapegoat” for developments that had been brewing for some time.
“Only now can I appreciate what a delicate tinderbox we were dealing with in respect of the LDIs,” she said.
“It rapidly became a market stability issue and we had to act to stabilise the situation. While the government was focused on investigating what had happened and taking action to remedy the situation, political and media commentators cast an immediate verdict blaming the mini-Budget.
“Regrettably, the government became a useful scapegoat for problems that had been brewing over a number of months.”