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| Future BoE governor Mark Carney defends pay package | Future BoE governor Mark Carney defends pay package |
| (35 minutes later) | |
| The future governor of the Bank of England (BoE), Mark Carney, has been forced to defend his pay arrangements to members of the House of Commons' Treasury Committee. | The future governor of the Bank of England (BoE), Mark Carney, has been forced to defend his pay arrangements to members of the House of Commons' Treasury Committee. |
| Mr Carney, who is currently the governor of the Bank of Canada, will be paid a total of more than £800,000 a year. | Mr Carney, who is currently the governor of the Bank of Canada, will be paid a total of more than £800,000 a year. |
| That is despite a recent pay freeze introduced for BoE staff. | That is despite a recent pay freeze introduced for BoE staff. |
| He is due to take over from the current governor Sir Mervyn King in July. | He is due to take over from the current governor Sir Mervyn King in July. |
| Mr Carney's remuneration includes a salary of £480,000, plus an annual pension allowance of £144,000 and a housing allowance of £250,000. | Mr Carney's remuneration includes a salary of £480,000, plus an annual pension allowance of £144,000 and a housing allowance of £250,000. |
| Speaking in front of the committee, he defended the housing allowance, arguing that such arrangements were "common" for executives moving to London, which he characterised as "one of the most expensive capital cities in the world". | Speaking in front of the committee, he defended the housing allowance, arguing that such arrangements were "common" for executives moving to London, which he characterised as "one of the most expensive capital cities in the world". |
| His current home of Ottawa, he noted, was one of the cheapest. | His current home of Ottawa, he noted, was one of the cheapest. |
| Mr Carney also said his scheduled five-year term as governor would be enough to ensure the "relaunch" of the bank, which is taking on additional responsibility for banking regulation and financial stability, along with monetary policy. | |
| Previous governors have served for eight-year terms, but Mr Carney was offered a shorter term after he initially decided not to apply for the job. | |
| Inflation targeting 'successful' | |
| Answering questions on monetary policy, Mr Carney said the bank's current framework of "flexible inflation targeting" was the most successful policy framework so far implemented by central banks, but he did not rule out alternatives. | |
| In a written submission to the committee, he said: "I have not made an assessment of the merits of altering the monetary policy framework in the UK... I do think, however, that it is important that the policy framework is reviewed periodically." | |
| Mr Carney is also likely to be quizzed on what the Bank can do to boost the UK's economic growth. | |
| Both the Chancellor George Osborne and current governor Sir Mervyn King have suggested the bank could do more. | |
| On Wednesday, Mr Osborne said the BoE should complement the government's deficit reduction strategy with monetary policy that "should continue to support the economy". | On Wednesday, Mr Osborne said the BoE should complement the government's deficit reduction strategy with monetary policy that "should continue to support the economy". |
| The UK has suffered from recessionary periods and low growth since 2008, and the bank has responded by keeping interest rates at historic lows and enacting a programme of quantitative easing. | The UK has suffered from recessionary periods and low growth since 2008, and the bank has responded by keeping interest rates at historic lows and enacting a programme of quantitative easing. |
| That has involved pumping £375bn into the financial markets in an attempt to stimulate the economy. | That has involved pumping £375bn into the financial markets in an attempt to stimulate the economy. |