Carney says the UK recession risk has receded due to BOE actions
Somehow, Mark Carney is taking a victory lap as economic data beats (dismal) expectations.
He was in the spotlight before the vote saying it could put the UK into a recession. Now, he says that after his August 4 rate cut and QE announcement that the economy is saved thanks to his actions.
Let's just say there are some wide logical holes in his argument. Surely he would have anticipated some central bank action in his recession forecast. Nevermind that Carney himself is the first to frequently point out that monetary policy works with a lag.
And that doesn't even begin to explain the August assessment that the economy had "weakened markedly," which is has proven entirely untrue.
Why not come out and say something like, "UK businesses and consumers have so far proven to be more resilient and less skittish than we anticipated. The economic reaction to a political event is difficult to predict and in hindsight we probably shouldn't have tried. Going forward we will evaluate the economic data and act accordingly."
