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Govt plays down rift with Mark Carney

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The Prime Minister’s allies have downplayed suggestions Theresa May is critical of the Bank of England’s monetary policy amid a recent war of words.

The Financial Times reports recent comments by May have caused concern at the Bank and Treasury that the Government was looking to intervene after she warned of “bad side effects” from loose monetary policy.

In her Conservative party conference speech, May said: “While monetary policy – with super-low interest rates and quantitative easing – provided the necessary emergency medicine after the financial crash, we have to acknowledge there have been some bad side effects.

“People with assets have got richer. People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer.”

Last week Carney said he would not “take instruction” from politicians.

He said: “Politicians have done a very good job of setting up the system. Where it can be difficult sometimes is if there are political comments on our policies as opposed to political comments on our objectives.

“The objectives are what are set by the politicians. The policies are done by technocrats. We are not going to take instruction on our policies from the political side.”

The comments come ahead of a decision by Carney as to whether he will serve as Bank governor until 2021, or quit the post as originally planned in 2018.

A source told the newspaper: “Nobody inside Number 10 seemed to get how her [May’s] words might be interpreted.”

But one aide says the negative interpretation of the speech was a misunderstanding.

They say: “He [Carney] is highly regarded by the Prime Minister. He has done a great job since the Brexit vote and she would be delighted were he to decide to serve out his full term.”

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. CARNEY should be sacked ASAP. He is not near in the same calibre as Lord King & is certainly not IMPARTIAL. Send him back to Canada

  2. People with savings have got poorer ?

    I have to disagree with that one I have made plenty on my savings thank you I choose not to let any bank have any of my money !

    And well said Mark Carney, he is there to do a job, not be influenced by politicians

  3. I have no idea who Irving Struel is but I do know that there is an apposite anagram of his name: Evil grunt sir!

    Mr Carney did well in his post in Canada ansd seems to have done pretty well over here with all the myriad problems and poor government with which he has had to contend. He like most of the rest of the world knows how inadvisable the Brexit result was and therefore is being hounded by the suicide squad.

  4. Exactly Harry, Irving pops up on Citywire from time to time spouting absolute rubbish. Having Mark Carney at the helm of the B of E is like having Lionel Messi playing for Arsenal. Don’t knock it we have a world class Central Banker here.

  5. Mervyn King was and still is an absolute buffoon. How he held down the role of governor for as long as he did is beyond me – utterly clueless.

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