Bank guidance was a monumental mistake
As the years go by the significance of the introduction of so-called forward guidance by the Bank of England in August 2013 has come into sharper focus. My initial reaction to this policy innovation was negative and my considered reaction is that it was a monumental mistake. The idea of providing individuals, businesses and financial markets guidance over the probable course of interest rates and asset purchases was not original, but copied form the Bank of Japan and the US Federal Reserve. The trigger of these remarks is Bank governor Mark Carney's latest speech, "Guidance, Contingences and Brexit", in which he defends the use of guidance and attempts to justify why Bank Rate is at precisely the same level as 5 years ago.
Economic Perspectives is a trusted provider of global macroeconomic and financial research with clients in North America, Asia and the UK.
EP research weaves complex and diverse information into coherent macro narratives, providing clear analysis and original market insights for global investors. Our clients benefit from our long experience in connecting economic developments with the credit and financial market outlook.
The analysis of developments in global private sector credit markets is fundamental to our understanding of the global economic and financial outlook. However, the actions and interventions of central banks and government have become increasingly important to our economic assessment.
For several years we have maintained that the only credible resolution of the 2008 global credit crisis is a resurgence of global inflation. We take an eclectic approach to the inflation outlook, considering political and socio-economic factors alongside macroeconomic drivers. We provide the multi-dimensional appraisal of the inflation outlook that is critical to formulating a successful investment strategy, at a time when inflation complacency is rife.
We offer our research on a subscription basis or as a bespoke consultancy service. Our publications reflect our research agenda, shaped by the issues raised in client meetings. Our bespoke work tackles research projects of particular interest to our clients and is delivered as written reports or presentations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.