More BOE scare tactics
Mark Carney didn't learn his lesson.
Arguably the low point of his governorship of the Bank of England was overly inserting himself in the Brexit referendum debate. The BOE made doomsday forecasts that looked like they were trying to frighten voters into voting to remain.
He hasn't learned his lesson.
Today the BOE published forecasts about how the economy will perform under various exit scenarios, including the 'worst case' which is a no deal, disorganized exit. With that he predicted an 8% drop in GDP, a 25% decline in the pound and a 30% drop in home prices.
He's being roundly mocked, including by former BOE MPC member Andrew Sentence.
Another former MPC member says the scenario doesn't make sense from a monetary policy perspective either, because it includes a hike to 5.50%, ostensibly to curb the decline in sterling.
"I don't understand why they say they would raise rates in face of a severe shock to output - inflation would rise and then drop fast as the one off rise fell from the calculations," he writes.
Naturally, politicians piled on.
Aside from criticism from his former colleagues, regular people are attacking him as well.
