Economics
HSBC’s Major Says ‘Maradona Effect’ Could Help BOE Move Markets
- Rhetoric, not rate-setting, can accomplish the heavy lifting
- Comparison made to Lord King’s 2005 Maradona monetary tool
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The Bank of England could rely more on rhetoric of negative interest rates to do the heavy lifting for crushing yields on U.K. debt.
Steven Major, global head of fixed-income research at HSBC Holdings Plc in London, suggests the BOE could fully employ the Maradona effect, whereby “a central bank can achieve the objective of tightening policy without actually increasing rates -- or vice versa when easing policy.”