Redwood also says it is clearly a Government-driven policy as it was the Chancellor Alistair Darling who explained the move in media coverage yesterday.
Redwood says: “Clearly he is in full knowledge of it and has given it his blessing.
“It therefore becomes his policy, whatever the truth about who first thought it should be adopted from within the Monetary Policy Committee and the Government.
“He dropped the old pretence that these are matters under independent control which we leave to the Bank and do not comment on.”
He adds: “I think inflating the deficit massively, spending huge sums on subsidising very large banks, and undertaking monetary easing increases the risks substantially.
“The Government is over-flexing the national credit card and national financial credibility.”
Redwood argues the Government should concentrate on making the banks heal themselves, instead of “shovelling obscene sums into them”.
He says: “If you are going to print some money, you need to have a prudent course for future public finances.
“The Government has not merely divorced Prudence but is holding a drink and drugs party on her grave.”