News Column

Economics: Go-it-alone policies condemned by Bank

February 5, 2014

Larry Elliott

Plunging share prices and currency turbulence are due to the go-it-alone approach of richer countries, a senior Bank of England official said yesterday as he called for policymakers to consider the needs of the global financial system. In what will be seen as an implicit criticism of the US Federal Reserve, Andy Haldane , the Bank's executive director for financial stability, said the lack of co-ordination reflected a failure to learn from the crash of 2007-09. "Individual countries act in their own best interests without taking into account the broader best interest of the financial system as a whole," he said, amid concerns the sell-off in markets this year marks a new phase in the crisis. The FTSE 100 index of leading UK shares closed down for the 10th day out of the past 11 following a drop of more than 4% in Japan's benchmark index overnight. Wall Street opened on a brighter note in the wake of a drop of more than 300 points on Monday, with the Dow Jones up by almost 100 points by lunchtime in New York . Larry Elliott

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Source: Guardian (UK)

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