M&G's Leaviss: Why central banks should adopt a Maradona approach to forward guidance

Is it an effective tool?

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." Investment Conundrums with Charles Stanley CIO Jon Cunliffe: Draghi is a much better central banker than Carney Leaviss said that forward ...