While the U.S. has been listening for hints of a pending pause in rate hikes (now that inflation appears well-contained), the U.K. expects one or more rate cuts in the near future (despite the highest money supply growth rates in nearly a decade).
What else is different about the topsy-tourvy world of British monetary policy? Here’s a quick comparative chart, from a bloke in his pyjamas:
|Policy Authority||Federal Reserve Bank||Bank of England|
|(Federal Open Market Committee)||(Monetary Policy Committee)|
|Head Honcho||Alan Greenspan||Mervyn King|
|Celebrity Resemblance||Martin Landau||Danny Aiello|
|Money Supply||$9.2 trillion||1.3 trillion £ ($2.3 trillion)|
|Target Rate||Fed Funds Rate||BoE Repo Rate|
|Trend||Eight 1/4 point hikes||Unchanged|
|Expectations||Hike(s), then pause||No change, or cut(s)|
|Sports Metaphor||Identify remaining rate hikes by equivalent inning of baseball game.||Be like a “true Yorkshire batsman: be ready to play on either foot .”|
|Policy Best Debated Over…||Brandy and cigars||Bangors and mash|
Read the full text of King’s speech.