Mike Carney pleased with effect of recent stimulus measures
LONDON — Six weeks after Mark Carney announced a barrage of Bank of England (BoE) stimulus, he has given an upbeat assessment of the new measures.The minutes of this week’s monetary policy committee meeting were littered with references to market metrics and spelt out how the package — unveiled in August in response to the Brexit vote — had led to a "greater than anticipated boost" to asset prices.That is notable because some economists and investors, including former BoE officials, had questioned how effective loosening would be since rates were already low and the central bank held £375bn of government bonds, about a quarter of the market.As the record of the gathering noted, gilt yields, swap rates, the pound and corporate-bond spreads declined along with banks’ funding costs, and equities rose."In summary, the immediate impact of the UK policy package on asset prices had been greater than expected, and the committee would monitor closely the extent to which those asset price mov...
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