Andrew Sentance was on BBC Radio’s Today program and he commented that the BOE made a mistake last summer in giving the impression that interest rates would remain at these historically low levels into 2015/16. He also sees rates rising from the current “unsustainable” level by the end of the year.
As with all central bank forecasts/forward guidance/staff projections, it’s a “damned if you do and damned if you don’t” scenario.
