{"id":73488,"date":"2023-12-19T08:24:43","date_gmt":"2023-12-19T08:24:43","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=73488"},"modified":"2023-12-19T08:28:00","modified_gmt":"2023-12-19T08:28:00","slug":"the-bank-of-england-has-gone-too-far","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2023\/12\/19\/the-bank-of-england-has-gone-too-far\/","title":{"rendered":"The Bank of England has gone too far"},"content":{"rendered":"<p>The <a href=\"https:\/\/www.ft.com\/content\/a2e7787a-d64c-46ab-9b6f-62897a547616\" target=\"_blank\" rel=\"noopener noreferrer\">FT notes this morning<\/a> that:<\/p>\n<blockquote><p>The UK is at high risk of a serious economic downturn next year, one of the world\u2019s biggest active bond fund managers has warned.<\/p><\/blockquote>\n<p>They added:<\/p>\n<blockquote><p>Daniel Ivascyn, chief investment officer at Pimco, told the Financial Times that \u201cIn the case of the UK \u2014 a smaller, open economy, with a consumer that\u2019s feeling the brunt of central bank policy far more than their US counterparts \u2014 you just have a higher probability of more significant economic deterioration. We do think there\u2019s potentially more hard landing risks.\u201d<\/p><\/blockquote>\n<p>I am aware that I say, quite often, that it is the policy of the Bank of England to create a recession in the UK. I do so for two good reasons.<\/p>\n<p>The first is to warn about what is coming.<\/p>\n<p>The second is to evidence that I said it was coming.<\/p>\n<p>Both are necessary if we are to eventually appreciate that the Bank will have done more harm than either Covid or inflation did by the time this will be over.<\/p>\n<p>In that context, it useful to note that I am not alone in thinking that the Bank has gone too far.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FT notes this morning that: The UK is at high risk of a serious economic downturn next year, one of the world\u2019s biggest active<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2023\/12\/19\/the-bank-of-england-has-gone-too-far\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-73488","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/73488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=73488"}],"version-history":[{"count":3,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/73488\/revisions"}],"predecessor-version":[{"id":73491,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/73488\/revisions\/73491"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=73488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=73488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=73488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}