Remarks by BOE chief economist, Andy Haldane
- Asymmetric QE response function nudges us towards that fiscal danger zone
- Adds to concerns about the erosion of monetary policy independence
- This is the most dangerous moment inflation-targeting has so far faced
- Expects UK inflation to be nearer to 4% than 3%
- Policy may see a 'Minsky moment', a taper tantrum without the taper
- Even if just a risk, it is a risk that is rising fast and which is best managed ex-ante rather than responded to ex-post
- Full speech
Just keep in mind that Haldane is due to leave the central bank at the end of September and he has been voicing such hawkish remarks since May, when he dissented against the board and voted to reduce QE purchases already at the time.
