I gave an interview yesterday to Talk tv about Bank of England monetary policy.
I called for an urgent review of their economic model and forecasts. The Bank has admitted its forecasts have been wrong on inflation for sometime but have announced a long winded review of what to do about it. If they cannot forecast inflation well it is difficult to understand how they can carry on setting rates to adjust inflation.
Their justification of a fourteenth rate hike this week was they needed to depress demand more to cut inflation further. They wish to do this by hitting the spending power of those with mortgages. It does not seem to have occurred to them that raising rates increases the spending power of those with savings. Their current policy is creating a manufacturing and housing recession.
I called for an end to selling bonds at huge losses. They pass the bill to the Treasury and are now lurching from creating too much money to destroying too much. Letting their balance sheet contract as the bonds repay is sufficient a squeeze.
Why does the Bank lurch from inflation to recession inducing policy yet again?
find my interview with Talk TV’s Mike Graham on You tube where we discussed the Bank of England’s forecasts and monetary policy.
You can find it between: 33:4344:23.