BoE under pressure as rate rise expecations grow

The Telegraph features comments from the IEA

Economists on the Institute of Economic Affairs’ so-called Shadow Monetary Policy Committee have criticised Mr Carney’s strategy of forward guidance as “misguided” and based on a “flawed model”, warning it will fuel inflation and lead to boom-and-bust cycles.

In a further blow, Gerard Lyons, a noted City economist, said yesterday that “forward guidance is feeding a housing bubble in London and may [be] resurrecting leverage and parts of the shadow banking world as well”.

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