View more on these topics

Carney: ‘Bank of England running out of options’ on economy


The Government needs to take responsibility to improve the economy, according Bank of England governor Mark Carney.

The Times reports that Carney believes the BoE has no tools left to improve the UK’s future economic outlook.

In a Berlin speech on economic reform last night, Carney said politicians need to take tough decisions on economic policy and public spending.

He said: “Long-run prosperity was never in the gift of monetary policymakers.

“As the tenth anniversary of the start of the crisis approaches, a consensus is growing that escaping this low-growth low-inflation trap will require a rebalancing between monetary, fiscal and structural policies. The last are the most important.”

Carney backed investment in the speech, due to record low interest rates.

In August, Carney said the Bank had options to stimulate the economy that did not involve more base rate cuts.

At the press conference following the base rate cut to 0.25 per cent, Carney was repeatedly asked if interest rates could drop below zero.

He said: “I am not a fan of negative interest rates. We have other options to provide stimulus.

“We are not intending to move to negative interest rates. One would not want to see deposit rates go below zero.”



Mark Carney ‘serene’ over Bank’s Brexit actions

Bank of England governor Mark Carney has told MPs he is “absolutely serene” on the judgements made by the monetary policy committee in the the lead up to and aftermath of Brexit. At a Treasury committee hearing yesterday, chairman Andrew Tyrie told Carney he would have the chance to answer allegations that he “over-egged” the […]


Bank of England strikes again claiming ‘property beats pensions’

The Bank of England chief economist who caused an outcry among advisers for saying they do not understand pensions has argued property is a better bet for retirement saving than a pension pot. Speaking to The Sunday Times, when asked whether owning a property or a pension was better for retirement, Andy Haldane answered “almost […]

uk equities

Has Bank of England’s QE package overshot its mark?

Bond prices have spiked causing yields to fall following the Bank of England’s latest tranche of bond buying, prompting some to question whether the Bank’s QE package has gone too far. Yesterday, the Bank of England bought £1.17bn of gilts with maturities of 15 years or longer as part of its stimulus programme. In the reverse […]

Stop the cold-calling

Royal London is pleased to support the petition calling for a ban on cold-calling for pension and investment products. The petition, launched by IFA Darren Cooke of Red Circle Financial Planning and hosted on the Parliamentary website, calls on the Government to ban cold-calling for pensions and investment products. A similar ban is already in force […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. From my minds eye, everything is geared (from a political and economy view point) to get the British public to spend, spend, spend and they are not doing this, (well fast enough anyway), so negative interest rates might well be inevitable ?

    From my experiences (from my clients) of 2016 is that they want to invest, invest, invest !

    Some may and will argue, why pay of debt with interest rates so cheap when potential returns from investments are or could be higher ? couple that with the mind set that people may be really thinking “do I really need new clothes, new car, new TV etc etc etc !

  2. Cutting the BBR to 0.25% doesn’t seem to have made any difference at all and nor does a further round of QE. We have other options to provide stimulus, says Mr Carney. Such as?

  3. It may help if the banks/lenders actually passed on the interest cuts. A client of mine who stupidly still has a SVR mortgage is paying 4.89% and has been since the BOE rate went to 0.5%. Is it any wonder that a lot of mortgagees don’t notice much difference. The best that the Governor can do is say “I do hope the banks pass on this most latest cut to customers”.
    Why is the FCA not hammering these lenders under the banner of TCF for charging (in probably most cases) loyal customers almost 20 times the rate of interest they are being charged? It is disgusting

  4. Why is your customer sitting on SVR?.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm