View more on these topics

Govt plays down rift with Mark Carney


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.”



Bank of England governor warns on hit from rising inflation

Bank of England governor Mark Carney has said sterling’s fall has helped the economy adjust, but that consumers will face difficulty going from “no inflation to some inflation”. Speaking at a roundtable in Nottingham, Carney said the price of goods and services is going to rise in the next few years, with food being the first […]


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 […]


The Govt’s high stakes poker game on Brexit

At the Conservative party conference last week, Theresa May announced she will trigger Article 50 by the end of March 2017 and that a Great Repeal Bill  will be brought forward at the next Queen’s Speech. While some were calling for more time before pressing the big red Article 50 button (notably one Mr George […]

What are the key changes to transform pensions?

By Fiona Tait, pensions specialist In her final article for Royal London, Fiona Tait reviews key changes she believes have transformed, or will transform, pensions. In my 12 years with Royal London I have been paid to review, study and explain the numerous changes to pension legislation which have transformed our industry in that time. This is […]


News and expert analysis straight to your inbox

Sign up


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.

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