Bank boss fighting to win over forward guidance sceptics

The Yorkshire Post features comments from the IEA

New Bank of England governor Mark Carney will gather with policymakers for the latest interest rate meeting this week as he battles to win over sceptics of his forward guidance strategy.

Influential economists on the Institute of Economic Affairs’ so-called shadow Monetary Policy Committee (MPC) have reportedly blasted the strategy, warning it will fuel inflation and lead to boom and bust cycles.

They are said to believe it is “misguided”, based on a “flawed model”, and has failed to guide market rates downwards.

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