Bank of england
I’ve interviewed Paul Fisher, who this month attended his final Bank of England Monetary Policy Committee meeting. He is now deputy head of the Bank’s Prudential Regulation Authority.
Here’s the full transcript below for those who are interested in monetary policy and financial regulation.
Mark Carney’s proposed cap on riskier mortgage lending is just the beginning…
Ian McCafferty is implicitly assuming that trend productivity growth has been lost forever and the only element to be explained is the shortfall relative to 2007. That makes the rest of his analysis, I would argue, inherently pessimistic.
If George Osborne had put the Bank of England in charge of compiling the Treasury’s output gap forecasts, he might have been going in to the next election promising even bigger spending cuts.
Around half of businesses understood Forward Guidance. But only 23% of households apparently took on board the Bank’s central message that rates would remain low for longer.
If Mark Carney really thinks it was “unreasonable” to expect business investment to play a part in driving the recovery, he should have a word with his own forecasting team.
Like Jim Bowen The Old Lady of Threadneedle Street is showing us what would have happened if the financial markets had taken its “lower for longer” message on interest rates more fully to heart.
In November’s Inflation Report, published today, the Bank appears to throw up its hands in despair over the UK-US short-term interest rate synchronisation.
While rate increases should be some way off yet, improvements in a range of economic indicators mean that ever more attention is set to shift towards the question of how and when monetary policy tightens. While calls for action are likely to build, the avoidance of premature movement will be vital.
I suspect that what most people are getting at when they ask whether we are seeing a bubble or not is something different. What they really mean is: are houses too expensive?
Latest from Independent journalists on Twitter