Economist warns of dangers in Carney's forward guidance

Richard Barwell, senior European economist at Royal Bank of Scotland, said the central bank's commitment to keep rates at a record low of 0.5% until unemployment drops to 7% was "incomplete" because it did not map out the route back to normal monetary policy, the Sunday Telegraph reports. Fuller guidance from Carney (pictured), the new governor, would have been more effective because clarity about the timing of a first increase may "quickly give way to increased uncertainty about the rate of ascent" once the economy is motoring, Barwell, a senior economist at the Bank until 2011, said. ...