UK leader Theresa May backs Bank of England governor Mark Carney
- 8 years ago
Bank of England governor Mark Carney is “absolutely” the best man for the job according to British Prime Minister Theresa May’s spokeswoman.
That endorsement came amid much speculation in the British media that he might quit when his current term ends in 2018 – right in the middle of the Brexit process.
His leaving then would not be a good thing says Jeremy Stretch, Head of FX Strategy at CIBC: “I think if we take the assumption that Mr Carney was perceived to be one of the few adults in the room, if we can use that phrase, in the immediate aftermath of the Brexit vote back in June, speculation about his future doesn’t add anything to the backdrop. So the speculation I think is just another layer of uncertainty for a post-Brexit Britain to consider.”
Governor of the Bank of England Mark Carney arrives at Downing Street to meet the Prime Minister pic.twitter.com/JuqZKBwzyq— Catherine Wyatt (@catherinehwyatt) October 31, 2016
May’s spokeswoman said the prime minister was “clear in her support for the governor” just hours before he had a regularly scheduled meeting with her on Monday. No statement was released after that meeting.
“It is clearly a decision for him, but the PM would certainly be supportive of him going on beyond his five years,” the spokeswoman added. “The PM has always had a good working relationship with the governor of the Bank of England and intends to continue that.”
The Financial Times and the BBC have reported that those close to Carney believe he will stay on until 2021.
Mark Carney is ready to serve a full eight-year term as BoE governor, defying Brexiters pushing for his resignation. https://t.co/iWE1Idf8OK pic.twitter.com/vYWBjR8ZGh— Financial Times (@FT) October 30, 2016
Guidance on Thursday
We could get some idea of his intentions on Thursday, at the UK central bank’s news conference to announce the latest inflation figures and whether it could unleash more stimulus.
On that Jeremy Stretch said: “I think the Bank of England will hold fire this week but I think it is still very much the case that the bank remains mindful of the need to inject further stimulus probably into the early stages of Q1 2017.”
Carney’s warnings about the economic risks of Britain leaving the European Union upset Brexit supporters before the referendum.
[WSJ] RT PaulHannon29: Bank of England’s Mark Carney faces backlash from Brexit backers https://t.co/hVlDPgzIdc via WSJ— ECON (@ECON_cl) October 31, 2016
Prime Minister May also took the unusual step of criticising the Bank of England over the effects of low interest rates at her party’s annual conference in early October, prompting push-back from Carney who said he would not be told how to do his job by politicians.
Jeremy Stretch concluded: “If Mr Carney were to leave on the original template of 2018 that could raise some risks that there was a degree of political interference or a loss of independence for the central bank which of course would be damagin
That endorsement came amid much speculation in the British media that he might quit when his current term ends in 2018 – right in the middle of the Brexit process.
His leaving then would not be a good thing says Jeremy Stretch, Head of FX Strategy at CIBC: “I think if we take the assumption that Mr Carney was perceived to be one of the few adults in the room, if we can use that phrase, in the immediate aftermath of the Brexit vote back in June, speculation about his future doesn’t add anything to the backdrop. So the speculation I think is just another layer of uncertainty for a post-Brexit Britain to consider.”
Governor of the Bank of England Mark Carney arrives at Downing Street to meet the Prime Minister pic.twitter.com/JuqZKBwzyq— Catherine Wyatt (@catherinehwyatt) October 31, 2016
May’s spokeswoman said the prime minister was “clear in her support for the governor” just hours before he had a regularly scheduled meeting with her on Monday. No statement was released after that meeting.
“It is clearly a decision for him, but the PM would certainly be supportive of him going on beyond his five years,” the spokeswoman added. “The PM has always had a good working relationship with the governor of the Bank of England and intends to continue that.”
The Financial Times and the BBC have reported that those close to Carney believe he will stay on until 2021.
Mark Carney is ready to serve a full eight-year term as BoE governor, defying Brexiters pushing for his resignation. https://t.co/iWE1Idf8OK pic.twitter.com/vYWBjR8ZGh— Financial Times (@FT) October 30, 2016
Guidance on Thursday
We could get some idea of his intentions on Thursday, at the UK central bank’s news conference to announce the latest inflation figures and whether it could unleash more stimulus.
On that Jeremy Stretch said: “I think the Bank of England will hold fire this week but I think it is still very much the case that the bank remains mindful of the need to inject further stimulus probably into the early stages of Q1 2017.”
Carney’s warnings about the economic risks of Britain leaving the European Union upset Brexit supporters before the referendum.
[WSJ] RT PaulHannon29: Bank of England’s Mark Carney faces backlash from Brexit backers https://t.co/hVlDPgzIdc via WSJ— ECON (@ECON_cl) October 31, 2016
Prime Minister May also took the unusual step of criticising the Bank of England over the effects of low interest rates at her party’s annual conference in early October, prompting push-back from Carney who said he would not be told how to do his job by politicians.
Jeremy Stretch concluded: “If Mr Carney were to leave on the original template of 2018 that could raise some risks that there was a degree of political interference or a loss of independence for the central bank which of course would be damagin