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Mark Carney: Politicans attacking central banks over inequality are engaged in 'massive blame deflection exercise' Mark Carney: Politicans attacking central banks over inequality are engaged in 'massive blame-deflection exercise'
(about 1 hour later)
Bank of England governor Mark Carney took aim at critics of central bankers, saying politicans blaming the bank's monetary policy for fuelling inequality were engaged in a "massive blame defection exercise". Bank of England Governor Mark Carney has taken aim at the critics of central bankers, saying politicans blaming the Bank's monetary policy for fuelling inequality were engaged in a "massive blame-deflection exercise".
His comments come as President-elect Donald Trump criticised the actions of the Federal Reserve in the US. While, in the UK Prime Minister Theresa May appeared to voice criticism of the bank’s monetary policies during her speech at the Conservative Party Conference in October, saying it had hurt savers. His comments come as the US President-elect Donald Trump criticised the actions of the Federal Reserve.
"While monetary policy – with super-low interest rates and quantative easing – provided the necessary emergency medicatine after the financial crash, we have to acknowledged there have been some side effects,” Mrs May told the hall. Prime Minister Theresa May appeared to voice criticism of the Bank’s monetary policies during her speech at the Conservative Party Conference in October, saying it had hurt savers.
"While monetary policy – with super-low interest rates and quantitative easing – provided the necessary emergency medication after the financial crash, we have to acknowledge there have been some side effects,” Mrs May said.
Speaking in Westminster in front of the House of Commons Treasury Select Committee on Tuesday, Mr Carney responded to criticism of the negative impact of low interates rates thrown at central banks around the world.Speaking in Westminster in front of the House of Commons Treasury Select Committee on Tuesday, Mr Carney responded to criticism of the negative impact of low interates rates thrown at central banks around the world.
Mr Carney, said the increasing inequality across major economies was driven by "much more fundamental factors". The Governor said the increasing inequality across major economies was driven by "much more fundamental factors". Mr Carney told members of the committee: "I think it is very important to distinguish between the stance on monetary policy and the reasons why global interest rates are low, and reasons why inequality has increased across major economies".
He told members of the Committee: "I think it is very important to distinguish between the stance on monetary policy and the reasons why global interest rates are low, and reasons why inequality has increased across major economy". "These are caused by much more fundamental factors and an excessive focus is, in a sense, a massive blame-deflection exercise. Curing the patient requires the operation, and monetary policy is keeping the patient alive."
"There are caused by much more fundamental factors, and an excessive focus is, in a sense, a massive blame deflection exercices." During the hearing, Mr Carney also suggested that City firms could start executing plans to leave London next autumn if they are disappointed by the early shape of the Government’s Brexit deal.
"Curring the patient requires the operation and monetary policy is keeping the patient alive." He said: "If the time to exit is measured in 18 months, or less and the degree of exit is considerable, then a number of firms will take decisions."
During the hearing, Mr Carney also suggested that City firms could start executing plans to leave London in autumn 2017 if they are disappointed by the early shape of the Government’s Brexit deal. When questioned on the recent extension of his term as Governor, Mr Carney confirmed he would leave in 2019, 12 months longer than originally planned. However, he is not taking up the option of three more years, despite a vote of confidence from Theresa May.
He said: "If the time to exit is measured in 18 month, or less and the degree of exit is considerable, then a number of firms will take decisions." Mr Carney denied that his change of plans had added to the uncertainty in the economy. “There are far bigger issues adding to uncertainties in the global and UK economy,” he said.
When questioned on his recent extension of his term as central bank governor, Mr Carney confirmed he would leave in 2019, 12 months longer than originally planned.
However, Mr Carney is not taking up the option of three more years, despite a vote of confidence from Theresa May.
He denied that his change of plans had added to the uncertainty in the economy.
“There are far bigger issues adding to uncertainties in the global and UK economy,” Mr Carney said.