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MPs quiz Mark Carney on Brexit fallout - business live MPs quiz Mark Carney on Brexit fallout - business live
(35 minutes later)
11.10am BST
11:10
Labour MP John Mann is bringing Carney to task on property funds, and the fact the FPC was aware that investors were likely to withdraw large sums of money in the event of a Brexit vote.
Why didn’t the FPC do anything?
Carney says that markets have created funds with daily liquidity that invest in illiquid assets (i.e. property). He says the FCA were aware and were looking at the issue.
11.04am BST
11:04
Tyrie now asks Donald Kohn about a Republican party report in the US that claims the Department of Justice did not want to see legal proceedings against the HSBC because of risks to financial stability.
Should we be taking this seriously?
Kohn says he has no specific knowledge of this situation.
I wouldn’t pass judgment until I heard the other side of the story.
Tyrie to Carney: “Did you discuss the matter with the chancellor? The allegation here is that UK authorities have been meddling.”
Carney says he was not involved in or aware of any alleged intervention on the HSBC case.
(A reminder of the HSBC files here.)
10.56am BST
10:56
Carney: relaxing capital requirements is no silver bullet
There will be no “credit crunch”, unlike 2008/2009, according to the governor, because banks will have funds available to lend. Credit supply (lack of it) will not constrain the economy.
Reeves says she worries that the relaxing of rules on bank’s capital requirements are not going to be enough to save the economy post-Brexit.
Carney says it’s just one element of a bigger story:
We would not represent this as a single silver bullet. It is part of a series of measures.
10.46am BST
10:46
Reeves says she is still worried about whether there will be a reduction in lending.
Carney says that demand, not credit availability, is more likely to wane.
We really want to make it as clear as possible to businesses and individuals that credit should be available for the right ideas, for the right transactions, be it a mortgage or a new business.
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at 10.50am BST
10.41am BST
10:41
Rachel Reeves, Labour MP, says the Bank was right to warn on Brexit risks before she moves on to the issue of counter-cyclical buffers.
Carney says that by relaxing the rules for banks he wanted to “take off the table” concerns about credit supply. “The banks are well capitalised.”
Updated
at 10.48am BST
10.38am BST10.38am BST
10:3810:38
Carney responds to Tyrie telling him that Boris Johnson thought he had done a "superb job: "Any port in a storm, chair." #BrexitCarney responds to Tyrie telling him that Boris Johnson thought he had done a "superb job: "Any port in a storm, chair." #Brexit
10.36am BST10.36am BST
10:3610:36
Now Tyrie is asking whether Carney would agree to the publication of records of any discussions the governor had with Osborne on the matter, in order to ease any fears of political bias the public might have.Now Tyrie is asking whether Carney would agree to the publication of records of any discussions the governor had with Osborne on the matter, in order to ease any fears of political bias the public might have.
The governor says that he is prepared to look at how that can be done as long as it is within the public interest.The governor says that he is prepared to look at how that can be done as long as it is within the public interest.
Tyrie quips that lead Brexiteer Boris Johnson has credited Carney with doing a good job since the vote.Tyrie quips that lead Brexiteer Boris Johnson has credited Carney with doing a good job since the vote.
Returning to serious mode, Carney says things are different in the current era, much more transparent.Returning to serious mode, Carney says things are different in the current era, much more transparent.
We don’t keep things under wraps.We don’t keep things under wraps.
10.29am BST10.29am BST
10:2910:29
Carney: I did not discuss a Brexit 'line' with ChancellorCarney: I did not discuss a Brexit 'line' with Chancellor
The governor now has the chance to defend himself against the allegations. He describes the allegations as “extraordinary”.The governor now has the chance to defend himself against the allegations. He describes the allegations as “extraordinary”.
The chair [of the FPC] does not guide conclusions. The views of the FPC are the views of the FPC.The chair [of the FPC] does not guide conclusions. The views of the FPC are the views of the FPC.
What was in the March record are the views of the FPC, they are not pre-judged or pre-decided.What was in the March record are the views of the FPC, they are not pre-judged or pre-decided.
Tyrie asks whether the Chancellor sought from Carney guidance on the likely “lines” the Bank would take on the referendum.Tyrie asks whether the Chancellor sought from Carney guidance on the likely “lines” the Bank would take on the referendum.
Carney says he didn’t, that’s not the way it works.Carney says he didn’t, that’s not the way it works.
Mark Carney looks as though he has just eaten a wasp at the Treasury Select Committee #BoE #GBPMark Carney looks as though he has just eaten a wasp at the Treasury Select Committee #BoE #GBP
UpdatedUpdated
at 10.31am BSTat 10.31am BST
10.25am BST10.25am BST
10:2510:25
David Kohn, an external member of the Bank’s Financial Policy Committee, says the committee were in agreement on Brexit risks, and that there was no pressure on policymaker to take one view or another.David Kohn, an external member of the Bank’s Financial Policy Committee, says the committee were in agreement on Brexit risks, and that there was no pressure on policymaker to take one view or another.
We looked at the potential risks that might emerge from a leave vote. All of us agreed it was the biggest near term risk to financial stabilityWe looked at the potential risks that might emerge from a leave vote. All of us agreed it was the biggest near term risk to financial stability
The statement we put out at the end of March was a consensus opinion.The statement we put out at the end of March was a consensus opinion.
10.20am BST10.20am BST
10:2010:20
Tyrie says he wants to address the allegation in the run-up to the referendum that the Bank attempted to scare voters about Brexit for political motives.Tyrie says he wants to address the allegation in the run-up to the referendum that the Bank attempted to scare voters about Brexit for political motives.
Tyrie runs through the allegations, made by various politicians on the Leave side of the campaign. They claimed the governor was working in the interests of David Cameron and George Osborne, calling into question the independence of the Bank of England.Tyrie runs through the allegations, made by various politicians on the Leave side of the campaign. They claimed the governor was working in the interests of David Cameron and George Osborne, calling into question the independence of the Bank of England.
Tyrie:Tyrie:
That’s a very serious allegation.That’s a very serious allegation.
10.16am BST10.16am BST
10:1610:16
Andrew Tyrie, chairman of the Treasury Committee, makes the point that this is a significant moment, as it is the first opportunity for MP’s to quiz the governor since the Brexit vote.Andrew Tyrie, chairman of the Treasury Committee, makes the point that this is a significant moment, as it is the first opportunity for MP’s to quiz the governor since the Brexit vote.
10.15am BST10.15am BST
10:1510:15
Here we go. The governor and Bank colleagues take their seats.Here we go. The governor and Bank colleagues take their seats.
10.14am BST10.14am BST
10:1410:14
The Treasury Committee is late starting, we will be bringing you updates once it’s underway...The Treasury Committee is late starting, we will be bringing you updates once it’s underway...
10.11am BST10.11am BST
10:1110:11
The full story on the FPC minutes from the Guardian’s Jill Treanor:The full story on the FPC minutes from the Guardian’s Jill Treanor:
Related: Bank of England was warned about Brexit property fund problemsRelated: Bank of England was warned about Brexit property fund problems
10.07am BST10.07am BST
10:0710:07
Quick note before the governor starts...Quick note before the governor starts...
This from Jasper Lawler of CMC Markets on the relief among investors...This from Jasper Lawler of CMC Markets on the relief among investors...
The confirmation of a new UK Prime Minister has offered some welcome certainty in uncertain times. Theresa May as PM has produced no Mayday calls in markets.The confirmation of a new UK Prime Minister has offered some welcome certainty in uncertain times. Theresa May as PM has produced no Mayday calls in markets.
The “safe hands” of Mrs May at the helm has actually reduced distress signals. The pound has risen over 1% against the dollar today, adding to yesterday’s gains when Andrea Leadsom ended her campaign to become the Tory party leader.The “safe hands” of Mrs May at the helm has actually reduced distress signals. The pound has risen over 1% against the dollar today, adding to yesterday’s gains when Andrea Leadsom ended her campaign to become the Tory party leader.
The certainty of Theresa May stepping into the top job in UK politics ahead of schedule has had the perhaps unintuitive effect of weighing on UK stocks.The certainty of Theresa May stepping into the top job in UK politics ahead of schedule has had the perhaps unintuitive effect of weighing on UK stocks.
It was the drop in sterling that cushioned the ‘Brexit blow’ because of its positive effect on UK company foreign earnings. Subsequently, the rebound in the pound is weighing on the FTSE 100, notably the big multinationals including Vodafone, GlaxoSmithKline and Diageo.It was the drop in sterling that cushioned the ‘Brexit blow’ because of its positive effect on UK company foreign earnings. Subsequently, the rebound in the pound is weighing on the FTSE 100, notably the big multinationals including Vodafone, GlaxoSmithKline and Diageo.
UpdatedUpdated
at 10.09am BSTat 10.09am BST