Policymakers have failed to heed message on guidance

Bank of England chief economist Spencer Dale says policy tightening will probably be slower than after previous recessions and investors may have failed to heed the message of policymakers’ forward guidance.

“If the financial markets are pricing in a sharp rise because they think in the past, every time the economy’s growing quickly the bank’s raised interest rates, I think they should think again,” Mr Dale said at an event in London yesterday.

“Our forward guidance says clearly that’s not the case.”