Blanchflower takes aim at BoE for recession - papers

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The Bank was not "forward-looking" enough and ought to have realised the scale of the recession sooner, according to Monetary Policy Committee member David Blanchflower, reports The Telegraph.

The acknowledgement comes amid growing evidence that the economy is facing a downturn as sharp and severe as in the early 1990s, and as one City consultancy forecast that the Bank would now have to reduce borrowing costs all the way down to 1pc. Prof. Blanchflower, who has been arguing in favour of lower borrowing costs for most of the past year, said the nine-member MPC committee had made a mistake by leaving rates at 5pc until this month. In a speech at the University of Kent, Prof Blanchflower said: “With hindsight, monetary policy has not been sufficiently forward looking. Changes i...

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