Are 'dangerous distractions' leading central banks to another policy error?

Richard Jeffrey, chief investment officer at Cazenove Capital, argues that UK and US policymakers should have tightened monetary policies sooner rather than later.

If there is one thing central banks should have learned over the past few decades, it is this: leaving policy changes until the moment all macro-economic signposts are pointing in the same direction means you are turning the wheel too late. Where now for rates after Fed hold? It is unfortunate, perhaps, that the transparency of our policy-setting processes, particularly in the UK, results in policymakers always wanting to justify their actions on the basis of hard data, rather than using their experience and intuition to determine what the appropriate course for interest rates should ...