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Brexit BOE forecasts added more evidence of central bank politicization



More BOE combat tactics

Mark Carney did not learn his lesson.

Probably, the lowest point of his governorship of the Bank of England overly inserted itself in the Brexit referendum debate. BOE made doomsday predictions that looked like they were trying to scare voters into voting.

He did not learn his lesson.

Today, the Bank of England has published predictions about how the economy will operate under various exit scenarios, including the “worst case,” which has nothing to do with, the unorganized way out. At the same time, he predicted a drop in GDP by 8%, a decrease in the pound by 25% and a decrease in housing prices by 30%.

He mockingly mocks, including a former member of BOE MPC Andrew Sentence.

Another former MPC member says that the scenario also does not make sense in terms of monetary policy, since it includes an increase to 5.50%, ostensibly to limit the decline of the pound sterling.

“I don’t understand why they say they’ll raise the stakes in the face of
strong shock to production — inflation will rise and then decline rapidly because
one take-off fell out of the calculations, ”he writes.

Naturally, politicians piled on.

In addition to criticism from his former colleagues, ordinary people are attacking him.

Forexlive


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