Mark Carney defends 'dead on arrival' forward guidance policy
The Governor denied that forward guidance has caused confusion among businesses
Tuesday 26 November 2013
Mark Carney was forced to defend forward guidance against criticism that the policy is ineffective.
Treasury Select Committee MP Brooks Newmark said the policy’s credibility had been hit by sharper growth and bigger falls in unemployment since the Bank unveiled the policy in August, prompting it to bring forward its forecast of when the jobless rate will hit its 7 per cent threshold for potential rate rises by 18 months.
But the Canadian accused Newmark of a “total failure of logic” and pointedly added: “What the guidance is doing is giving businesses, households, financial market participants, parliamentarians perspective on the conditions necessary to exist in the economy before… raising interest rates.”
He also denied confusion over the policy among the 200 businesses he has met, adding: “When we survey businesses, we don’t see confusion.”
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 Watch: Man takes selfie every mile of 2,600 mile hike, creates amazing timelapse video
- 4 The day I starred in Only Fools and Horses
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings plane crash: Co-pilot Andreas Lubitz 'sought treatment for eyesight problems'
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Yemen crisis: Saudi Arabia ready for long campaign against Houthi rebels across the border
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Revealed: Putin's army of pro-Kremlin bloggers
Germanwings plane crash: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...