Friday, 4 November 2016
Time for the Bank to Show Some Humility
There is no need for me to write a long piece about yesterday's U turn by the Bank of England and its hint that it may well have to put interest rates up before long. Quelle surprise. But there is no need for me to write anything because I wrote it all back in August (as you can see here) when they made their idiotic decision to cut interest rates to 0.25%. I said at the time, along with many others, that it was wrong and half baked. We have been entirely vindicated.
If they were being at all objective they would have held up their hands, admitted they were wrong and put interest rates back up to where they should have been all along. But they won't. They won't because they are not being objective, they are being political and they are displaying groupthink on a massive scale.
Earlier this week Mark Carney announced that he will be staying on for an extra year in his highly remunerative job. Can anyone explain to me what we are paying for? I have a better record of forecasting and of judging the economy than the Governor. Can I have his job?