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What's in new BoE boss Bailey's in‐tray?
Publication year - 2020
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.12460
Subject(s) - governor , economics , brexit , position (finance) , balance (ability) , boss , balance sheet , momentum (technical analysis) , bullion , monetary policy , fiscal policy , recession , keynesian economics , economic policy , finance , engineering , mechanical engineering , medicine , history , archaeology , european union , physical medicine and rehabilitation , aerospace engineering
▀ The new BoE governor takes the job at a time when the economy is struggling to generate momentum. His first big call will be over whether the central bank should continue its divergent stance of resisting calls to loosen policy. ▀ With little room to support the economy with interest rate cuts, the next downturn could force the MPC to dive deeper into the use of unconventional monetary policy tools with all the uncertainties and controversies that implies. ▀ Governor Bailey will also need to tackle new problems, including the run‐down of the BoE's balance sheet, overseeing the financial sector's future post‐Brexit, and pressures to address climate change. ▀ But with the new governor bound by the BoE's remit, and fiscal and microeconomic policy likely to play a bigger role in stabilising the economy, the economic significance of the position should not be overstated.