Andrew Bailey, Governor of the Bank of England
(Picture: REUTERS)Eight years ago, long before anti-growth coalitions, when Environment Secretary Liz Truss was making unintentionally funny speeches about pork markets, the then Governor of the Bank of England was under fire.
Mark Carney was, said MP Pat McFadden, an “unreliable boyfriend”, always teasing about rises in interest rates, but never showing up on time to actually deliver one.
Businesses and consumers were left “not really knowing where they stand”, said McFadden.
I thought this was harsh at the time and at this point Carney’s forward guidance looks like a golden era of central bank clarity.
Last night his predecessor Andrew Bailey insisted the Bank’s emergency intervention in the bond market to save pension funds would definitely end on Friday.
“You’ve got three days left now and you’ve got to sort it out,” he said.
It looked like one of those comments, in which the present government specialises, that comes with a double asterisk attached.
(** Market conditions apply. U-turns are available.)
Sure enough, the FT was already being briefed that the bond support programme could well continue past Friday, as it will almost certainly have to.
If it says little, beyond bold, clear statements of the intention to fix things no matter what, the Bank of England remains a powerful institution, and our best way out of all of this.
It can leave the flip-flopping to the politicians.
Just now Bailey looks less like an unreliable boyfriend than your drunk uncle trying to break up a fight in a pub but only making things worse.
Leave it son.
