IR Reaction, Roundup
The ASI’s Ben Southwood says Carney bottled it – dead right.
Simon Wren-Lewis is not inspired.
Duncan Brown says it was a “Storm in a teacup“.
Scott Sumner is very disappointed by the BoE’s justification for rejecting NGDPLT.
Marcus Nunes says Carney’s bubble has popped.
Stephanie Flanders nails the confusion from Carney about whether this was a change in the Bank’s reaction function.
The Evening Standard think low nominal rates are always and everywhere good for homeowners (HT James). Wrong, see Japan, where house prices have crashed by 50% over two decades.
Meanwhile the Daily Telegraph insist low nominal rates are always and everywhere bad for “savers”. Wrong, again see Japan, where cash and bank deposits have been a relatively good investment over the last twenty years, I believe with a positive real return.