Carney Awaited as BOE Inertia Danger Looms in Recession Battle
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Bank of England officials will probably discuss the threat of a triple-dip recession today and prepare to sit on their hands as a looming change of governor overshadows the remainder of Mervyn King’s term.
With five months before Mark Carney takes over, the Monetary Policy Committee is awaiting results of its credit- boosting program after halting bond purchases and signalling no further interest-rate cuts for now. That backdrop will color today’s “pre-MPC” briefings in London as policy makers discuss new forecasts before their Feb. 7 decision
“There is that element of ‘wait-and-see’ about things, and that’s not particularly to the advantage of the economic situation,” said Neil Mackinnon, global macro strategist at VTB Capital in London and a former U.K. Treasury official. “It becomes an excuse to wait until the new governor is in place. There is always the danger of policy paralysis.”
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