The Governor of the Bank of England needs to give himself a yellow card

With no sense of irony the Governor in his global capacity working for financial stability  warned against excessive borrowings for AI possibly leading  to a sell off in AI shares which could lead to a collapse of bonds. Well he should know. It was the announcement of a large sales programme of UK government bonds just before the Truss budget that helped collapse the gilt market. This was proven when the Bank reversed its sales policy and wiped out much of the bond damage almost as soon as it had happened. It took Labour and its higher spending and borrowing plans to take interest rates well above the worst Truss level and keep them there  throughout 2025 and 2026 to date.

This is not the first warning of possible market falls we have had from the Governor. He warned in April  of a private debt led collapse, after correctly identifying a big build up of such debt. He now seems more concerned about AI and leverage ownership of shares though e mentions private debt in passing.

I am against the Bank issuing such general warnings and gloomy forecasts. If the Governor thinks tec based borrowing is excessive then he has a range of powers to stop that being true in the UK banking system. As it is more likely to be happening  in the US than in the UK he can have  a firm and private conversation with the Head of the Fed who can do something about it in the US. The UK needs more tec investment, not less. Putting out a general warning either makes him look foolish  when the forecast turns  out to be wrong, or weak if it is right and he has taken  no regulatory measures  to stop it.