If you believe many of the comments in the broadcast media and from the City, Liz Truss is threatening to undermine the independence of the Bank of England and rip up a policy framework that has served us well for decades. One member of the Monetary Policy Committee (MPC), Michael Saunders, has already felt the … Continue reading The Bank of England shouldn’t be above criticism
Tag: bank of england
Is Liz Truss on the right track on ‘Covid debt’?
Liz Truss has pledged to put Covid debt on a ‘longer-term footing’ as part of her bid to become the next Prime Minister. The details are sketchy, but the proposal seems to be to extend the maturity of £311 billion of pandemic-related borrowing to lock in low interest rates, and to slow the pace of … Continue reading Is Liz Truss on the right track on ‘Covid debt’?
Bank of England falls further behind in race to tame inflation
The Bank of England’s Monetary Policy Committee (MPC) has raised interest rates by just a quarter point, to 1.25 per cent. This was the fifth increase in as many meetings, but still leaves rates near historic lows. In my view, this was a mistake. This decision is hard to square with April’s consumer price inflation … Continue reading Bank of England falls further behind in race to tame inflation
No, sterling is still in no danger of becoming an ‘emerging market currency’
Every now and again someone – often Kamal Sharma from Bank of America (BofA) – warns that sterling is at risk of being downgraded to ‘emerging market’ status. This is lapped up and gleefully retweeted by anyone with an axe to grind against Brexit, or Boris Johnson.,, However, as Sharma himself rightly said in his … Continue reading No, sterling is still in no danger of becoming an ‘emerging market currency’
Plain-speaking Economics 