Fraser Nelson
Already a subscriber? Log in
Leaving interest at this rock-bottom rate, while Britain vies with Greece to have the worst inflation in the Western world, gives the impression, he fears, that the Bank isn’t that concerned about inflation, and has taken upon itself the nurturing of a debt-fuelled recovery. “It’s sending a weak signal and risks undermining the Bank’s credibility in committment to that target and leading to an upwards drift in terms of expectations.” He also says that the Bank’s econometric model is wrong, and that it is underestimating how low rates cause a weak pound and imported inflation.
Anyway, here is Sentance talking to Bloomberg’s Linda Yueh.
PS: The below graph from the Wall St Journal looks at differing approaches to inflation and interest rates. And, below it, the UK position.
Because you read about bank of england
Also by Fraser Nelson
Latest
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in