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Justin Kuepper

Carney May Prove Too Accommodating at BOE Post

By February 6, 2013

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The markets have high hopes for Mark Carney's appointment to head the Bank of England, after a very successful career as the Bank of Canada's governor and the BOE's falling out with Sir Mervyn King. But, concerns are now arising that Mr. Carney may prove too accommodating of the government, acting without the best interest of the U.K. necessarily in mind.

For example, Mr. Carney suggested that the BOE may want to drop its inflation target in favor of a nominal GDP target. Such a move could lead to market concerns about the BOE's commitment to sound money, since inflation would likely rise and the GDP target itself is a very ambiguous measures given that it's often prone to multiple revisions over time.

Read more about these concerns at the WSJ:
http://online.wsj.com/article/SB10001424127887324445904578282010522792582.html

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