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Bank of England's Mark Carney says inflation hasn't peaked yet after hitting 3% today - business live Bank of England's Mark Carney says inflation hasn't peaked yet after hitting 3% today - business live
(35 minutes later)
1.58pm BST
13:58
Here’s a clip of Mark Carney today, warning that inflation will probably rise further in October or November:
"Inflation will peak" in next couple of months - Bank of England Governor Mark Carney tells @CommonsTreasury https://t.co/8I5mA6Udpu pic.twitter.com/GzZ8C6xciv
1.29pm BST1.29pm BST
13:2913:29
Carney: Bank of England is trying to tackle its gender pay gapCarney: Bank of England is trying to tackle its gender pay gap
And finally, governor Carney is asked about the Bank of England’s gender pay gap.And finally, governor Carney is asked about the Bank of England’s gender pay gap.
He says Bank is planning to publish details next month. But he’s happy to give some top lines now. Namely...He says Bank is planning to publish details next month. But he’s happy to give some top lines now. Namely...
The median gender pay gap is 24%The median gender pay gap is 24%
The mean pay gap is 21%.The mean pay gap is 21%.
But, on an equal work for equal pay assessment, there is no gender pay gap.But, on an equal work for equal pay assessment, there is no gender pay gap.
The gaps exists because there are more men at the top of the Bank than lower down the ranks, who are paid more.The gaps exists because there are more men at the top of the Bank than lower down the ranks, who are paid more.
Carney insists the Bank is committed to improving diversity. He cites ‘blind’ recruitment panels, spreading the recruitment net beyond economists, hiring from 40 universities (up from just 10).Carney insists the Bank is committed to improving diversity. He cites ‘blind’ recruitment panels, spreading the recruitment net beyond economists, hiring from 40 universities (up from just 10).
If you start from a position of being almost exclusively a white male institution, you need to have a deliberate strategy of movement.If you start from a position of being almost exclusively a white male institution, you need to have a deliberate strategy of movement.
In the end, the Bank expects to be in the “middle of the pack” for the financial services industry on gender, but near the top for the public sector.In the end, the Bank expects to be in the “middle of the pack” for the financial services industry on gender, but near the top for the public sector.
And that’s the end of the session.And that’s the end of the session.
Carney is over after a question on gender pay gap. The median gap is 24% and the mean is 21%. No gap on equal pay for equal work terms.Carney is over after a question on gender pay gap. The median gap is 24% and the mean is 21%. No gap on equal pay for equal work terms.
UpdatedUpdated
at 1.31pm BSTat 1.31pm BST
1.15pm BST1.15pm BST
13:1513:15
Back in the Thatcher Room, Mark Carney is invited to dwell on the benefits of Brexit....Back in the Thatcher Room, Mark Carney is invited to dwell on the benefits of Brexit....
The governor cited a few, including:The governor cited a few, including:
But, Parliament will have to decide the balance of those opportunities versus striking a transition deal and a new arrangement with the EU.But, Parliament will have to decide the balance of those opportunities versus striking a transition deal and a new arrangement with the EU.
1.05pm BST1.05pm BST
13:0513:05
Carney denies that the Bank’s quantitative easing programme, which has bought £425bn of bonds with newly created money, is the monetary equivalent of heroin.Carney denies that the Bank’s quantitative easing programme, which has bought £425bn of bonds with newly created money, is the monetary equivalent of heroin.
Carney asked if @nickmacpherson2 is right and QE is like heroinAnswer: We're clean. Not addicted and not about to go through withdrawalCarney asked if @nickmacpherson2 is right and QE is like heroinAnswer: We're clean. Not addicted and not about to go through withdrawal
12.59pm BST12.59pm BST
12:5912:59
Treasury hits back at OECD over BrexitTreasury hits back at OECD over Brexit
Breaking away from Mark Carney (and inflation), the Treasury has slapped down the OECD after it suggested that Britain could stay in the European Union.Breaking away from Mark Carney (and inflation), the Treasury has slapped down the OECD after it suggested that Britain could stay in the European Union.
The Paris-based think tank argued this morning that Britain’s economy would get a boost if it chose not to follow through with Brexit.The Paris-based think tank argued this morning that Britain’s economy would get a boost if it chose not to follow through with Brexit.
In its annual assessment of the UK, the OECD predicted that growth would slow in 2018 year and business investment fall.In its annual assessment of the UK, the OECD predicted that growth would slow in 2018 year and business investment fall.
It also warned that a hard Brexit would “would hurt trading relationships and reduce long-term growth”.It also warned that a hard Brexit would “would hurt trading relationships and reduce long-term growth”.
But there would be a “significant” boost if the Brexit vote was reversed, perhaps through a second referendum, it suggested.But there would be a “significant” boost if the Brexit vote was reversed, perhaps through a second referendum, it suggested.
In response, the Treasury has insisted that the public won’t get a chance to change last June’s referendum result:In response, the Treasury has insisted that the public won’t get a chance to change last June’s referendum result:
‘We are working to achieve the best deal with the EU that protects jobs and the economy. We aim to agree a Free Trade Agreement that is comprehensive and ambitious. Our £23 billion National Productivity Investment Fund which will improve our country’s infrastructure, increase research and development and build more houses.‘We are working to achieve the best deal with the EU that protects jobs and the economy. We aim to agree a Free Trade Agreement that is comprehensive and ambitious. Our £23 billion National Productivity Investment Fund which will improve our country’s infrastructure, increase research and development and build more houses.
We are leaving the EU and there will not be a second referendum.’We are leaving the EU and there will not be a second referendum.’
The OECD’s report was presented to the press in London this morning, but chancellor Philip Hammond didn’t hang around long enough to take questions....The OECD’s report was presented to the press in London this morning, but chancellor Philip Hammond didn’t hang around long enough to take questions....
Amazing moment when, after introducing the OECD to outline their bleak Brexit forecast, Hammond legs it before press can ask any questions pic.twitter.com/i6CMVwMnmIAmazing moment when, after introducing the OECD to outline their bleak Brexit forecast, Hammond legs it before press can ask any questions pic.twitter.com/i6CMVwMnmI
12.52pm BST12.52pm BST
12:5212:52
Q: Should fiscal policy be taking more of the strain to help the UK economy?Q: Should fiscal policy be taking more of the strain to help the UK economy?
Unsurprisingly, Mark Carney won’t be lured into commenting on tax and spending policies. We take fiscal policy as given, he insists, it’s not for us to advise the government.Unsurprisingly, Mark Carney won’t be lured into commenting on tax and spending policies. We take fiscal policy as given, he insists, it’s not for us to advise the government.
And on house prices, he says the housing market faces “structural problems” (ie, we’re not building enough new homes) but argues that prices aren’t in a bubble (reminder, they rose by 5% per year in August).And on house prices, he says the housing market faces “structural problems” (ie, we’re not building enough new homes) but argues that prices aren’t in a bubble (reminder, they rose by 5% per year in August).
He says the government’s Help to Buy hasn’t had a major impact on the market, either in terms of prices or stimulating a lot of new builds.He says the government’s Help to Buy hasn’t had a major impact on the market, either in terms of prices or stimulating a lot of new builds.
12.33pm BST12.33pm BST
12:3312:33
The pound has dropped by half a cent against the US dollar since Mark Carney’s testimony began.The pound has dropped by half a cent against the US dollar since Mark Carney’s testimony began.
Sterling may be suffering from the governor’s warnings about a no-deal BrexitSterling may be suffering from the governor’s warnings about a no-deal Brexit
The pound is falling while Mark Carney is talking https://t.co/8fp0TNvHFN pic.twitter.com/MUNzvV0TrlThe pound is falling while Mark Carney is talking https://t.co/8fp0TNvHFN pic.twitter.com/MUNzvV0Trl
12.32pm BST12.32pm BST
12:3212:32
Q: Does the Bank of England have a clue about why UK productivity is so weak?Q: Does the Bank of England have a clue about why UK productivity is so weak?
Carney says he does have a clue yes...and after more prodding from the committee he cites weak business investment and the wider impact of economic uncertainty.Carney says he does have a clue yes...and after more prodding from the committee he cites weak business investment and the wider impact of economic uncertainty.
John Mann extra deadpan at the Treasury Committee today. Here he is asking if Carney "has a clue" about why productivity is so low pic.twitter.com/Ig0CSFx5E7John Mann extra deadpan at the Treasury Committee today. Here he is asking if Carney "has a clue" about why productivity is so low pic.twitter.com/Ig0CSFx5E7
12.26pm BST12.26pm BST
12:2612:26
Q: The UK’s debt burden is growing, thanks to consumer credit products such as PCPs used to buy new cars. When will the bubble blow up?Q: The UK’s debt burden is growing, thanks to consumer credit products such as PCPs used to buy new cars. When will the bubble blow up?
Carney argues that auto finance is not as serious as some claim.Carney argues that auto finance is not as serious as some claim.
If someone walks away from a PCP plan then the debt falls on the car vendor - or in many cases the manufacturer of the car.If someone walks away from a PCP plan then the debt falls on the car vendor - or in many cases the manufacturer of the car.
He says banks are well-capitalised to handle a rise in bad debts.He says banks are well-capitalised to handle a rise in bad debts.
12.23pm BST12.23pm BST
12:2312:23
Q: When must a transition deal be agreed, before firms take matters into their own hands and trigger their contingency plans?Q: When must a transition deal be agreed, before firms take matters into their own hands and trigger their contingency plans?
Carney won’t commit to a fixed date, but says the issue is particularly urgent for the City.Carney won’t commit to a fixed date, but says the issue is particularly urgent for the City.
Transition deal needed by Q1 for financial sector, Carney says, for other sectors 'there is a bit of a lag'. So urgency greatest at banksTransition deal needed by Q1 for financial sector, Carney says, for other sectors 'there is a bit of a lag'. So urgency greatest at banks
12.19pm BST12.19pm BST
12:1912:19
Carney: Businesses are losing faith in smooth BrexitCarney: Businesses are losing faith in smooth Brexit
Q: How have businesses and consumers’ attitude to Brexit changed?Q: How have businesses and consumers’ attitude to Brexit changed?
Mark Carney indicates that UK firms have become “less confident about a smooth transition” and less confident about the end state of Brexit.Mark Carney indicates that UK firms have become “less confident about a smooth transition” and less confident about the end state of Brexit.
Households are less worried, he says,Households are less worried, he says,
At present, household expectations are broadly consistent with a smooth outcome to a future arrangement.At present, household expectations are broadly consistent with a smooth outcome to a future arrangement.
But consumer confidence has fallen, partly due to lower real incomes (due to rising inflation).But consumer confidence has fallen, partly due to lower real incomes (due to rising inflation).
Carney adds that financial markets are the most concerned - they have already priced in a significant adjustment to the UK’s future prospects, and they may have to ‘mark up’ the UK’s future performance [if Brexit goes better than some fear].Carney adds that financial markets are the most concerned - they have already priced in a significant adjustment to the UK’s future prospects, and they may have to ‘mark up’ the UK’s future performance [if Brexit goes better than some fear].
UpdatedUpdated
at 12.20pm BSTat 12.20pm BST
12.10pm BST12.10pm BST
12:1012:10
Q: What preparations are you making for Brexit?Q: What preparations are you making for Brexit?
Carney says the Bank of England has looked at worse-case scenarios, and what we can do to mitigate those risks.Carney says the Bank of England has looked at worse-case scenarios, and what we can do to mitigate those risks.
That includes making sure that banks are sufficiently capitalised to handle a very bad outcome.That includes making sure that banks are sufficiently capitalised to handle a very bad outcome.
On the upside, the Bank could raise its growth forecasts if Britain agrees a “full, comprehensive, ambitious arrangement” with the rest of the EU.On the upside, the Bank could raise its growth forecasts if Britain agrees a “full, comprehensive, ambitious arrangement” with the rest of the EU.
.@catmckinnell asking about the basis of @bankofengland forecasting. Mark Carney: we have looked at worst case scenarios as well as the best pic.twitter.com/AZtaeduLEA.@catmckinnell asking about the basis of @bankofengland forecasting. Mark Carney: we have looked at worst case scenarios as well as the best pic.twitter.com/AZtaeduLEA
UpdatedUpdated
at 12.11pm BSTat 12.11pm BST
12.06pm BST12.06pm BST
12:0612:06
Carney: Need Brexit solutions on derivative contracts, insurance, data...Carney: Need Brexit solutions on derivative contracts, insurance, data...
The Treasury committee are probing Mark Carney about how the trillions worth of derivatives contracts between the UK and other EU country members will be handled after Brexit.The Treasury committee are probing Mark Carney about how the trillions worth of derivatives contracts between the UK and other EU country members will be handled after Brexit.
Mark Carney says this cannot be resolved if Britain crashes out without a deal.Mark Carney says this cannot be resolved if Britain crashes out without a deal.
Q: Is a two-year transition period enough to resolve this problem?Q: Is a two-year transition period enough to resolve this problem?
Carney says that the best solution would be legislation that would “grandfather those contracts”, so that they could continue to be honoured after Brexit.Carney says that the best solution would be legislation that would “grandfather those contracts”, so that they could continue to be honoured after Brexit.
He also cites cross-border insurance (European companies and individuals who have taken out insurance from UK entities) and cross-border data concerns.He also cites cross-border insurance (European companies and individuals who have taken out insurance from UK entities) and cross-border data concerns.
And...he repeats his argument that a hard Brexit would hurt Europe more than the UK on these issues.And...he repeats his argument that a hard Brexit would hurt Europe more than the UK on these issues.
There’s more data that is relevant to the EU in the UK than vice versa...There’s more data that is relevant to the EU in the UK than vice versa...
These issues are bigger for Europe than they are for us, but they’re material for us.These issues are bigger for Europe than they are for us, but they’re material for us.
11.59am BST11.59am BST
11:5911:59
Bang on cue, Mark Carney argues that a ‘no-deal’ Brexit poses a threat to Europe’s financial stability.Bang on cue, Mark Carney argues that a ‘no-deal’ Brexit poses a threat to Europe’s financial stability.
He tells the Treasury committee that Europe would be ‘short of financial services capacity’ in the short term, if Britain leaves the EU without a deal.He tells the Treasury committee that Europe would be ‘short of financial services capacity’ in the short term, if Britain leaves the EU without a deal.
The entire economic impacts are greater for the UK, he says, but the financial stability impact is greater for the EU in the short term.The entire economic impacts are greater for the UK, he says, but the financial stability impact is greater for the EU in the short term.