Benzinga Radio: Bloomberg's Linda Yueh on Central Bank Policy - 'Seeing Double'

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We spoke with Linda Yueh, Bloomberg TV's economics correspondent, fellow at St. Edmund Hall at the University of Oxford and associate of the Globalization program at the London School of Economics' Center for Economic Performance, on the changing nature of central bank policy in England and the rest of the developed world. Yueh sees discrepancies in the policy mandates of certain central banks, particularly between the Financial Policy Committee (FPC) and the Monetary Policy Committee (
MPC
) of the Bank of England. The MPC, which deals with interest rates, and the FPC, which regulates bank lending, could often come into conflict under scenarios where inflation is high while lending is low. The UK seems to be heading in exactly that direction. Inflation came in at more than twice the BoE's target this quarter, and if lending continues to slow the MPC and the FPC may find themselves canceling each other out as the MPC advocates for higher interest rates to slow inflation while the FPC pushes for more lending. The extension of regulatory bodies' mandates in the UK reflects a global trend: the burgeoning power of central banks. Conflicts of intra-organizational nature, such as those between the MPC and FPC, may in fact be the least significant implications of this phenomenon. For more commentary on central bank policy see Linda Yueh's recent article on Project Syndicate:
Seeing Double at Central Banks

Be sure to check out the audio of the interview in its entirety: Bloomberg's Linda Yueh on Central Bank Policy: 'Seeing Double'

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