Jim Leaviss, head of retail fixed interest at M&G, has said Bank of England governor Mark Carney has the potential to emulate footballing legend Diego Maradona by using surprise tactics to support the markets.
Leaviss' comments were in light of Federal Reserve chairman Jerome Powell's comments last month that the central bank's use of forward guidance would be "significantly smaller" during his tenure, which reopened the debate on the value of forward guidance. Speaking on a panel at a Riksbank conference in Sweden, Powell said: "Forward guidance was highly useful in the crisis. I think it will have a significantly smaller role to play going forward." Leaviss said that forward guidance was the "last tool in the toolbox" for central bankers and surprising markets with policies was a more pow...
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