Tilney Bestinvest: BoE faces 'political backlash' if next round of stimulus fails

Cental banks' credibility could be called into question

The Bank of England could face "political attack" in the next few years, as investors become increasingly dissatisfied with the stimulant effects of monetary policy on the economy, according to Tilney Bestinvest's CIO Gareth Lewis.

Lewis warned current monetary policy has failed to secure an "equitable and sustainable recovery" and has "accelerated the pattern of wealth inequality", which has favoured the so-called wealthy 1%. As a result, the credibility of central banks has been called into question, potentially leading to "political disaffection" and intervention. The Bank of England has indicated it will look to cut interest rates, after holding them at 0.5% for over eight years, or introduce further quantitative easing this summer in light of the volatility following the Brexit vote. Mervyn King: No need...