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Breakingviews: BoE's Carney obstructed on monetary policy

Wednesday, August 14, 2013 - 03:59

Aug. 14 - The Bank of England governor was forced into a number of caveats to his policy of long-term low interest rates by a divided monetary policy committee, says Breakingviews Edward Hadas.

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So -- to the Bank of England over the extent afford guidance and they're crack open the champagne bottles just yet Europe's economy is now the woods. So says I think Edwards how to as a breaking views and you have written your European piece of evidence coming book how much of that and second year and I told about a Bank of England yes -- -- now I'm. These minutes. Will -- to be reinforced. Doubts. That the bank will keep rates like for the next three years rights gizmos and we'll. Is that sent. We have one dissent. I think that the the part that's of the conversation that was not summarized in the minutes and is the part that I really want to hear about it which is. When they decided on the very strong knockout conditions. That is to say the conditions that would allow them to raise rates before. Unemployment falls. I'm in those conditions are so strong that you could do that any time you could say well actually inflation expectations are well anchored -- We don't have any record of how those were come upon what they were fought about but my guess is that the prices unanimity for Mark Carney the new governor was indeed these very very strong -- conditions which make the whole policy pretty much empty. So Martin meals dissent is the last bit of that. Job but I don't think that that actually adds a huge amount what we already can tell from reading for statement which is Carney is not really getting his way. But. Some policy make is that the sort compelling case to Reese talks. -- There have been that dissent has been there since the beginning that's passes the B warrants experiments he he he is clearly won them over to a degree it. Well I -- he's in new boss and you know I think anyone who's ever had a new boss knows the -- -- you -- when you get someone -- as you say yes let me try and figure out -- see the world your way. For you are dealing with some pretty strong minded economists say that the last roughly. An hour to invited to a meeting or two let's say. Many courtesy people getting a little bit up and honor. You know. Difficult with this and I think as I say the knock on condition suggested that he's not he hasn't won them over at all. I I didn't realize that in Canada. On the policy make is we're expected to follow the governor's lead. Yes I ever have I not know exactly except. It's one of those British audiences units of having free and Franken to changes in Buena publishing dissents and so forth. The Americans in the Canadians are much more. Firm about who's the boss tells you what to do. All right I'm -- to the Arizona and you have written your piece yet but I'd I'd like to try and secure brings us what you think about this. Are are you -- -- half and two across awful putts and I think on the glass sort of 52%. Full. Check on that and if you look at this a graph what you see is basically about. Four years of -- Merck sharp decline of mild recovery and then 34 years of basically flat GDP from Europe. -- a little bit of a decline the last six quarters -- 11 and a half percent now. We're regaining that. It's a lot better to see positive number than negative number it's nice that the positive numbers little better than than analysts were expecting that suggests that there's a little more momentum. But we still have not broken out of stagnation. -- in the stagnation and there's really not a lot of sign of that I think we really get some time and I think we're moving forward now off once and for all. But let's not get carried away and -- -- that's a wish in an opinion and judgment that's what the data is telling. And that's going to be thrust of your -- on camera -- yes that's right target and written many thanks that we can see that have goals on the bring you reps are a little bit later on. Florida setting inside what's our US show every day 12:30 eastern sentencing that he PS team. I'm acts of Acropolis is --

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Breakingviews: BoE's Carney obstructed on monetary policy

Wednesday, August 14, 2013 - 03:59