Fuelled by the Bank's monetary death march, Britain is hurtling towards disaster
The Bank of England’s fourteenth rise in interest rates is unscientific, unnecessary, and underestimates the powerful global forces washing over these islands.
It pushes policy further beyond the safe or useful therapeutic dose for no clear purpose other than validating expectations on the futures market.
The Bank is the only big central bank that is actively selling bonds under its turbo-charged policy of quantitative tightening (QT), an experiment that has never been tried before and is much harder to calibrate than officials pretend.
There is a high risk that the Bank is incubating a full credit crunch that will bankrupt tens of thousands of viable businesses.
Once such a process is allowed to happen, it can snowball into a destructive cascade that is extremely hard to stop and inflicts years of damage on society.
Ambrose Evans-Pritchard Telegraph 3 August 2023
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