Should Mark Carney Shut Up?

Mistermeaner

Interesting. Why do you say investment banking is dead?

Is it because of the rise of the diy investor and cheap direct access to markets?

mwpt

Thrugelmir wrote: »

For those running a business. Forward guidance is extremely useful. Better than not knowing what was going to happen one month to the next. Means that medium term planning can be made with certainty.

Which is all very well if there had been any real forward guidance.

wymondham

yes ..........................

lisyloo

Thrugelmir wrote: »

For those running a business. Forward guidance is extremely useful. Better than not knowing what was going to happen one month to the next. Means that medium term planning can be made with certainty.

I really can't tell if this sarcasm.
But go on then - what use is consistently incorrect forward guidance?

michaels

"When the facts change, I change my mind. What do you do?..."

Sooner have someone who adjusts policy to reflect reality than someone who allows dogma / 'face-saving' to force them to make a wrong decision.

The bank of England takes a position based on the facts (including forecasts) available to them at that time. This info is shared rather than kept secret.

Which of these steps would the doubters like to see differ.
1) The bank should not have a plan 'if x happens as forecast then we will do y'?
2) This plan should be kept secret in case x does not happen and so they don't end up doing y?

Electrum

All these morons should just stand back and let the free market back,

but then everything would have a large correction, from the current manipulated levels.

wotsthat

michaels wrote: »

Sooner have someone who adjusts policy to reflect reality than someone who allows dogma / 'face-saving' to force them to make a wrong decision.

The bank of England takes a position based on the facts (including forecasts) available to them at that time. This info is shared rather than kept secret.

Which of these steps would the doubters like to see differ.
1) The bank should not have a plan 'if x happens as forecast then we will do y'?
2) This plan should be kept secret in case x does not happen and so they don't end up doing y?

My issue is more to do with not being able to rely on forward guidance to provide a guide to what might happen going forward.

mayonnaise

Electrum wrote: »

All these morons should just stand back and let the free market back,

but then everything would have a large correction, from the current manipulated levels.

Trust me, you don't want a free market.
A truly free market would have you work for a living instead of sponging off taxpayers like me.

Electrum wrote: »

Im on JSA and over the benefits cap.

Basically because of housing benefit and Child tax credits I get my total benefits reduced by the amount of JSA I should be getting before the cap.

So If I do a little work here and there, and declare the earnings, it would be taken off my JSA would it not? But my benefits wouldnt actually go down as long as I only earn a little, I would still be getting £500week.

Would it complicate my claims for housing benefit or would I even need to tell them?

vivatifosi

I quite like Carney's approach (he's easy on the eye too, which is much appreciated compared to say, Eddie George). Wrt the fixed term, we've just fixed too. But as kinger101 said, it's as much about the certainty and budgeting. There's no point in fixing to bet against the markets.

It's a tough and volatile market to offer forward advice in, I don't think you can expect them to always get it right.

Nikkster

wotsthat wrote: »

My issue is more to do with not being able to rely on forward guidance to provide a guide to what might happen going forward.

I thought it was quite clearly a *guide* to what *might* happen going forward... as opposed to any kind of guarantee.