The UK economy’s slowdown is clear to all. Except the Bank of England

Governor Mark Carney tells us time and time again that interest rates will rise, but will anyone believe him in the future?

Mark Carney is not so much an unreliable boyfriend as a schoolboy who keeps getting his homework wrong. The Bank of England governor gave his quarterly review of the economy last week and yet again confounded earlier expectations that he would increase the cost of borrowing.

Whereas in the past Carney has confidently predicted that the economy is robust and capable of absorbing increases in interest rates, only to find plausible excuses for not going ahead, this time he was unable to offer any coherent defence.

Continue reading…