, Columnist
Carney Warned of the Risks of Brexit. Then He Ignored Them.
Raising rates went against the Bank of England governor’s own analysis and the central banker’s playbook.
About that rates decision...
Photographer: Peter Nicholls/WPA Pool/Getty Images Europe
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Could Bank of England Governor Mark Carney be the new Jean-Claude Trichet? The former President of the European Central Bank is still lambasted in markets for mistakenly raising rates in 2011.
Investors are particularly unforgiving of the sort of ungainly U-turn that Trichet’s ECB was forced to execute, hiking twice only to have to reverse course and cut twice before year-end. The Bank of England has raised rates twice in the past year and may soon be forced to do a U-turn of its own, in which case Carney will probably receive the same treatment.