What Is Wrong with the Bank of England's Decision Today?

The BoE’s decision to raise the Bank Rate to 0.75% is a mistake. It is a mistake comparable to those made by Alan Greenspan’s Federal Reserve in the years between 2003 and 2006. 

 Mark Carney

Mark Carney

 

It is a mistake that must be understood in a wider context. Not just the political context – which promotes ‘monetary radicalism and fiscal conservatism’ – to quote David Cameron and George Osborne. But also in a wider monetary policy context. 

As the governor of the Bank pointed out recently: ‘the Bank is the only game in town’ ...

Read the full article on the PEF website