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Podcast: Beyond Currency
Episode: 19 May 2023 - Bank of England needs to be careful about forward guidance
Description: The Bank of England must guard against “painting itself into a corner” by providing guidance to the markets about its intentions regarding monetary policy.
That was the conclusion of a conference hosted by the Federal Reserve of Atlanta earlier this week. By providing guidance to the markets in advance the Bank faces the prospect of either being accused of misleading traders and analysts should subsequent data releases mean it has to change its mind or pre-empting the votes of committee members who are entitled to have sufficient time to consider all options before casting their vote.
It becomes far harder to p...