Mark Carney could learn a thing or two from former European Central Bank president Jean Claude-Trichet.
In the days when Trichet was at the helm of the Frankfurt-based institution, the mere mention of the words “strong vigilance” or “heightened alertness” during its monthly press conference was enough for markets to price in a rate rise.
The former almost certainly meant rates would rise the following month, while the latter was also a signal that tighter monetary policy was on the way. They say imitation is the greatest form of flattery. But when it comes to the Bank of England Governor’s attempts at “doing a Trichet” – there’s certainly room for improvement.
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