PSigma's Cumming criticises BoE's stance

PSigma's Neil Cumming has criticised Mervyn King's approach to interest rates and said if he continue...

PSigma’s Neil Cumming has criticised Mervyn King’s approach to interest rates and said if he continues with his current stance the downward shift in the economy could accelerate. The UK Growth fund manager said if the Bank of England’s “bear hug” goes on for too long it will cause the downward momentum in the economy to overshoot. “Although King accepted that much of the inflation problem was driven by the external factors of food and energy inflation, he appears to be determined that this is the time to derive any excesses of recent times out of the UK economy.” He added that momentum...