BoE Tempts Traders With Boilerplate Bailey Statement
The Bank of England on Monday did precisely what you don't want to do in a crisis: Speak up without demonstrating the necessary conviction.
It's better to remain silent than to be audibly meek, a lesson Andrew Bailey may learn over the next several days after issuing an underwhelming statement amid a historic selloff in gilts and a record low for the pound.
The figure (below) depicts one of the more astounding moves you'll ever see in a developed market asset.
The five-day jump in five-year
I do hope PM Truss, who “prior to winning the leadership race was openly critical of the BoE, blaming the bank for the UK’s inflation woes,” has channeled her inner Harry Truman and has “The pound sterling stops here” sign front and center on her desk at 10 Downing.
The hallmark of right wing leadership is to blame someone else for all of the problems that exist and then simultaneously claim that “I alone can fix it”. The buck doesn’t stop with her, never will, and someone (BoE, immigrants, or poor people) will carry the burden of blame for the remainder of her tenure.
Spot on cdameworth.