The Today programme said it was about to interview the Governor of the Bank of England. I fear once again they will fail to ask him anything critical or central to the economic mess the government is in.So far they have failed to explore the big failings of the Bank on inflation and heavy losses.
The BBC usually has a craven approach to the Bank of England . It watched as the Bank printed too much money, held rates too low for too long and created an inflation that hit 5.5 times the target it was meant to keep to. The Bank failed to forecast this huge inflation until it was well set and happening.The BBC did not run the inflation warnings from critics then put them to the Bank.
Then the BBC watched as the Bank overdid its lurch to high interest rates to curb inflation by adding big sales of bonds it had paid too much for at huge losses. No other Central Bank did this. The Bank invaded fiscal policy, securing payment of all its losses by the government and taxpayers. Why?
Questions
Why did Bank make such huge errors in forecasting inflation ahead of the big inflation?
If the Governor counters by saying the inflation was not foreseeable because it was the Ukraine war and energy prices that did it, then ask
Why was inflation 3 times target before the Russian invasion?
Go on to
How did Switzerland, Japan and China keep inflation down to 2% despite being big energy importers?
Weren’t Switzerland, China and Japan Central Banks right not to announce new or enlarged programmes of money printing and borrowing 2020-22? Isn’t that how they kept inflation down ?
According to the latest OBR forecast the Bank will lose £288 bn on its bonds from Q3 2022 when they last made a profit to the end of the programme. Isn’t this an unacceptable burden on UK taxpayers who need to pay the bill?
Why doesnt the Bank stop selling bonds at a loss when holding them to repayment will recover a lot of that loss?
Why does the Bank offer the same interest rate to banks lending to it as it charges them for borrowing? Why not copy the ECB and commercial banks by having a gap between lending and borrowing rates?
What is the monetary policy purpose of selling the bonds? Why does no other Central Bank do it?
As the Bank printed money and bought bonds in order to cut interest rates and provide stimulus, why doesn’t it see that doing the opposite drives up rates and slows the economy?
If a large company boss planned losses of £288 bn would he or she get a bonus? etc