This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2018/sep/04/mark-carney-governor-bank-of-england-paul-pester-quits-tsb-business-live
The article has changed 18 times. There is an RSS feed of changes available.
| Version 10 | Version 11 |
|---|---|
| Mark Carney 'willing to stay' at Bank of England after Brexit - business live | Mark Carney 'willing to stay' at Bank of England after Brexit - business live |
| (35 minutes later) | |
| A former Bank of England policymaker, Andrew Sentance, has criticised the whole circus around Mark Carney’s future. | |
| Today’s session follows days of speculation about whether the Treasury and the Bank were trying to hammer out an agreement to keep the governor for longer. | |
| That, Sentance told Radio 4’s World at One, bad for the central bank’s credibility: | |
| “It seems like the appointment of the governor is something that is happening between the Chancellor and the governor, and is not happening in a transparent way. | |
| “It seems an awful lot is happening in this appointment process behind the scenes and that is not good in terms of the independence of the Bank of England.” | |
| Treasury committee member Wes Streeting has welcomed Mark Carney’s offer to stay on longer, and hopes an announcement comes soon. | |
| Mark Carney confirms to @CommonsTreasury that he is in discussions with Treasury about extending his term beyond his anticipated departure date in June 2019. Makes sense, in my view, in light of Brexit and the sooner we have clarity on this the better. | |
| Ed Conway of Sky News suspects that Carney could actually extend his governorship to 2021, rather than leaving in June 2019 as currently planned. | |
| That would mean a full eight-year stint (he started in summer 2013) - the standard term for BoE governors. | |
| Breaking: Mark Carney signals he will extend his tenancy through the Brexit transition."I am willing to do whatever else I can to promote a smooth Brexit & effective transition... The Chancellor and I have discussed this. I would expect an announcement to be made in due course." | |
| The fact that Carney emphasised he is willing to stay on for the Brexit transition implies he might indeed stay until the originally-intended end of his term: mid 2021. So another two years rather than one | |
| Chances of a hard Brexit, as far as market is concerned, have risen from 1 in 5 to 1 in 4 according to BoE chief economist Andy Haldane | |
| Moments after signalling he's staying on as Governor, Mark Carney reminds Brexiteers why he so infuriates them, warning that a no deal Brexit would mean a return of the real income squeeze. And warns that the BoE may even have to RAISE interest rates if there's a hard Brexit | |
| Q: How vulnerable is sterling to a sudden devaluation? | |
| Mark Carney takes a ‘glass half-full’ approach. He thinks the pound is currently suffering from the risk of a no-deal Brexit, so it might rise if an agreement and a transition deal is reached. | |
| But if that doesn’t happen, the pound would move the other way, he explains. | |
| Quilter Investors head of investment, Anthony Gillham, believes the UK government should accept Mark Carney’s offer to stay longer at the Bank of England. | |
| Gillham concedes that Carney hasn’t be “universally popular” (particularly with Leave supporters, who have hated his warnings about Brexit). | |
| But even so, Britain would benefit from an experienced hand at the top of the Bank in the likely turbulent times ahead. | |
| Gillham writes: | |
| “Central banks have done a lot of heavy lifting over the last decade in an effort to restore economic stability, although they have often been required to swim upstream against a current of destabilising political uncertainty. As if to illustrate the point, despite the Bank of England’s efforts to protect sterling over the summer, we have seen the pound chasing up positive sentiment around Brexit, before following it back down when the political rhetoric changes. | |
| “If Mark Carney’s tenure is extended he will have his work cut out, but the case for an experienced captain to guide the UK through dangerous waters has grown stronger as Brexit negotiations have dragged on. He will install a measure of certainty on monetary policy, which provides some air cover through what will surely be an unpredictable spell. As Bank of England governor Mark Carney hasn’t always been universally popular, but appointing him as temporary caretaker through this period of transition does make sense.” | |
| The Treasury have declined to comment on Mark Carney’s comments today, but have confirmed that an announcement will come in due course. | The Treasury have declined to comment on Mark Carney’s comments today, but have confirmed that an announcement will come in due course. |
| The committee have moved away from Mark Carney’s future, and onto the impact of artificial intelligence on the UK economy (are they suggesting the governor could be replaced by a robot?). | The committee have moved away from Mark Carney’s future, and onto the impact of artificial intelligence on the UK economy (are they suggesting the governor could be replaced by a robot?). |
| Q: How many jobs will be lost to the fourth industrial revolution? | Q: How many jobs will be lost to the fourth industrial revolution? |
| Chief economist Andy Haldane says estimates for gross job losses range from 10% and 50% of the global workforce - as jobs are automated or entire professions are replaced with software. | Chief economist Andy Haldane says estimates for gross job losses range from 10% and 50% of the global workforce - as jobs are automated or entire professions are replaced with software. |
| Of course, you also need to factor in how many new jobs are created (coding all those robots etc) | Of course, you also need to factor in how many new jobs are created (coding all those robots etc) |
| But the big picture is that the gross job losses due to AI, big data, etc, the gross job losses will be “at least as large and possibly larger as in previous industrial revolutions”, Haldane adds. | But the big picture is that the gross job losses due to AI, big data, etc, the gross job losses will be “at least as large and possibly larger as in previous industrial revolutions”, Haldane adds. |
| Here’s our news story on governor Carney’s pledge to help Britain through Brexit by serving longer at the Bank of England: | Here’s our news story on governor Carney’s pledge to help Britain through Brexit by serving longer at the Bank of England: |
| Mark Carney has confirmed he is in talks with the Treasury over staying on at the Bank of England to smooth any potential fallout from Brexit. | Mark Carney has confirmed he is in talks with the Treasury over staying on at the Bank of England to smooth any potential fallout from Brexit. |
| Dropping the broadest possible hint he could remain at Threadneedle Street beyond his scheduled departure date in June, the Bank of England governor said: “Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and an effective transition at the Bank of England.” | Dropping the broadest possible hint he could remain at Threadneedle Street beyond his scheduled departure date in June, the Bank of England governor said: “Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and an effective transition at the Bank of England.” |
| Carney confirmed he had held talks with the chancellor, Philip Hammond, over his future, and said an announcement would be made by the government “in due course”. | Carney confirmed he had held talks with the chancellor, Philip Hammond, over his future, and said an announcement would be made by the government “in due course”. |
| Speaking to MPs on the Treasury committee, tasked with scrutinising appointments at the central bank, he said: “I am signalling a willingness to do whatever I can to support this process.”... | Speaking to MPs on the Treasury committee, tasked with scrutinising appointments at the central bank, he said: “I am signalling a willingness to do whatever I can to support this process.”... |
| More here: | More here: |
| Charlie Elphicke MP disputes the Bank’s claim that food prices would surge if Britain left the EU without a deal next year. | Charlie Elphicke MP disputes the Bank’s claim that food prices would surge if Britain left the EU without a deal next year. |
| Q: Couldn’t the UK set its own tariffs, meaning cheaper food imports from countries outside the EU? | Q: Couldn’t the UK set its own tariffs, meaning cheaper food imports from countries outside the EU? |
| Carney says that any such cut in tariffs would be countered by a slump in sterling after a no-deal Brexit (driving up imports). | Carney says that any such cut in tariffs would be countered by a slump in sterling after a no-deal Brexit (driving up imports). |
| There’s not much reaction in the financial markets to Mark Carney’s offer to serve longer at the Bank of England. | There’s not much reaction in the financial markets to Mark Carney’s offer to serve longer at the Bank of England. |
| The pound is still down 0.25% against the US dollar today, at $1.284. | The pound is still down 0.25% against the US dollar today, at $1.284. |
| Curious that sterling #GBP has barely budged since #BoE gov Carney announced his willingness to stay on in the role past next summer pic.twitter.com/4HlZ7FfS6q | Curious that sterling #GBP has barely budged since #BoE gov Carney announced his willingness to stay on in the role past next summer pic.twitter.com/4HlZ7FfS6q |
| I guess that’s because a) there’s no actual announcement yet, b) the City’s concerns about Brexit extend well beyond the identity of the Bank of England governor, and c) most currencies have slipped against the US dollar today. | I guess that’s because a) there’s no actual announcement yet, b) the City’s concerns about Brexit extend well beyond the identity of the Bank of England governor, and c) most currencies have slipped against the US dollar today. |
| Mary Carney weighs in too -- he says that it is unlikely that Britain would leave the EU without a deal or a transition deal in March. | Mary Carney weighs in too -- he says that it is unlikely that Britain would leave the EU without a deal or a transition deal in March. |
| But if that unlikely scenario does happen, the Bank would do what it could to mitigate the impact on UK real incomes, the governor says. | But if that unlikely scenario does happen, the Bank would do what it could to mitigate the impact on UK real incomes, the governor says. |
| However, there are ‘limits’ to how much the Bank could tolerate a slump in the pound (in other words, it might be forced to raise interest rates to support sterling). | However, there are ‘limits’ to how much the Bank could tolerate a slump in the pound (in other words, it might be forced to raise interest rates to support sterling). |
| The Treasury committee are now quizzing the Bank about the impact of a no-deal Brexit on the UK economy. | The Treasury committee are now quizzing the Bank about the impact of a no-deal Brexit on the UK economy. |
| What might happen to food prices and the cost of living if we reach March 2019 without a deal between the UK and the EU, and both sides walk away? | What might happen to food prices and the cost of living if we reach March 2019 without a deal between the UK and the EU, and both sides walk away? |
| Chief economist Andy Haldane says it would be a “material rise in the cost of things in the shops”, particularly items that are imported from overseas. | Chief economist Andy Haldane says it would be a “material rise in the cost of things in the shops”, particularly items that are imported from overseas. |
| That would be due to a weaker pound and higher tariffs on those goods, he explains. | That would be due to a weaker pound and higher tariffs on those goods, he explains. |
| Q: How long would that effect last for? | Q: How long would that effect last for? |
| History shows that it often persists for several years, Haldane replies. | History shows that it often persists for several years, Haldane replies. |
| Carney is asked about his warning last month that a no-deal Brexit is an “uncomfortably high” risk. | Carney is asked about his warning last month that a no-deal Brexit is an “uncomfortably high” risk. |
| Q: Does that mean that it’s now a 60:40 chance? [as trade secretary Liam Fox claimed]. | Q: Does that mean that it’s now a 60:40 chance? [as trade secretary Liam Fox claimed]. |
| Carney replies that this isn’t what he meant. Brexit negotiations are approaching a critical time, and thus the bank’s Financial Policy Committee is very focused on the risks. | Carney replies that this isn’t what he meant. Brexit negotiations are approaching a critical time, and thus the bank’s Financial Policy Committee is very focused on the risks. |
| Mark Carney is also asked about the resignation of TSB chief executive Paul Pester this morning, following its IT meltdown. | Mark Carney is also asked about the resignation of TSB chief executive Paul Pester this morning, following its IT meltdown. |
| He replies that senior managers must “absolutely” take responsibility for failures on their watch - be they conduct, operational or financial. | He replies that senior managers must “absolutely” take responsibility for failures on their watch - be they conduct, operational or financial. |
| “Responsibility has now been taken” for a series of quite fundamental failings that have disadvantaged many customers and hurt confidence in TSB, he continues coldly (is he suggesting Pester should have quit earlier?) | “Responsibility has now been taken” for a series of quite fundamental failings that have disadvantaged many customers and hurt confidence in TSB, he continues coldly (is he suggesting Pester should have quit earlier?) |
| We look forward to a new team being put in place, the governor continues briskly. | We look forward to a new team being put in place, the governor continues briskly. |
| Q: Has the governor given any thought to who might (eventually) succeed him? | Q: Has the governor given any thought to who might (eventually) succeed him? |
| Mark Carney declines to suggest a shortlist, saying only that there are “many qualified candidates”. | Mark Carney declines to suggest a shortlist, saying only that there are “many qualified candidates”. |
| Then, rather interestingly, he says there are “some advantages” to running the recruitment process at a time when both sides have “full knowledge of the exact form of Brexit” which the country has chosen. | Then, rather interestingly, he says there are “some advantages” to running the recruitment process at a time when both sides have “full knowledge of the exact form of Brexit” which the country has chosen. |
| In other words: It’s rather hard to recruit a world-class central banker to run the Bank of England when you don’t know whether Britain will crash out of the EU without a deal before they even get their feet under the desk.... | In other words: It’s rather hard to recruit a world-class central banker to run the Bank of England when you don’t know whether Britain will crash out of the EU without a deal before they even get their feet under the desk.... |
| Some snap reaction to Mark Carney’s comments: | Some snap reaction to Mark Carney’s comments: |
| The interesting thing here is that he has made the offer to stay on, but @hmtreasury hasn't accepted it yet https://t.co/kGFfyOnsmz | The interesting thing here is that he has made the offer to stay on, but @hmtreasury hasn't accepted it yet https://t.co/kGFfyOnsmz |
| Looks that #Carney will extend #BOE term. When asked if will stay longer as Governor says I am willing to do whatever else I can to promote smooth #Brexit Have discussed it with #Chancellor & announcement will be made in due course | Looks that #Carney will extend #BOE term. When asked if will stay longer as Governor says I am willing to do whatever else I can to promote smooth #Brexit Have discussed it with #Chancellor & announcement will be made in due course |
| Carney hasn't explicitly said he's willing to stay on, but he also hasn't unequivocally ruled out it either. #gbp | Carney hasn't explicitly said he's willing to stay on, but he also hasn't unequivocally ruled out it either. #gbp |
| Unfortunately, Mark Carney has declined to reveal his decision today - after all, it’s the chancellor’s decision to announce. | Unfortunately, Mark Carney has declined to reveal his decision today - after all, it’s the chancellor’s decision to announce. |
| I’ve “made them aware of my willingness” to do what I can to help, he adds. | I’ve “made them aware of my willingness” to do what I can to help, he adds. |
| Carney adds that “It is a privilege to work at the Bank of England”. | Carney adds that “It is a privilege to work at the Bank of England”. |
| Treasury committee member Wes Streeting has welcomed Carney’s comments. | Treasury committee member Wes Streeting has welcomed Carney’s comments. |
| Mark Carney confirms to @CommonsTreasury that he is in discussions with Treasury about extending his term beyond his anticipated departure date in June 2019. Makes sense, in my view, in light of Brexit and the sooner we have clarity on this the better. | Mark Carney confirms to @CommonsTreasury that he is in discussions with Treasury about extending his term beyond his anticipated departure date in June 2019. Makes sense, in my view, in light of Brexit and the sooner we have clarity on this the better. |
| [For anyone just tuning in... Mark Carney is currently due to leave the Bank in nine months time. He was originally due to depart this summer, but in 2016 he agreed to stay on until June 2019. Now a further extension is on the cards...] | [For anyone just tuning in... Mark Carney is currently due to leave the Bank in nine months time. He was originally due to depart this summer, but in 2016 he agreed to stay on until June 2019. Now a further extension is on the cards...] |
| Nicky Morgan begins the session by joking that today’s session hasn’t attracted much press attention -- and then reads out a stream of headlines about Mark Carney’s future at the Bank of England. | Nicky Morgan begins the session by joking that today’s session hasn’t attracted much press attention -- and then reads out a stream of headlines about Mark Carney’s future at the Bank of England. |
| Can he shed any light on whether he’d stay longer at the Bank? | Can he shed any light on whether he’d stay longer at the Bank? |
| Governor Carney replies that at this “critical period” it is “important that everyone does everything they can to help with the transition of exiting the European Union”. | Governor Carney replies that at this “critical period” it is “important that everyone does everything they can to help with the transition of exiting the European Union”. |
| That includes parliamentarians, business people and central bankers. | That includes parliamentarians, business people and central bankers. |
| Carney says: | Carney says: |
| Accordingly, even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and an effective transition at the Bank of England. | Accordingly, even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and an effective transition at the Bank of England. |
| That sounds like a heavy hint that he’d stay at the Bank, beyond June 2019 - his current exit date. | That sounds like a heavy hint that he’d stay at the Bank, beyond June 2019 - his current exit date. |
| Carney adds that he has already discussed this issue with the chancellor, Philip Hammond, and he expects an announcement to be made in due course. | Carney adds that he has already discussed this issue with the chancellor, Philip Hammond, and he expects an announcement to be made in due course. |
| More to follow! | More to follow! |