Carney says ready to stay longer at Bank of England

Credit: Reuters Studio
Published on September 4, 2018 - Duration: 01:45s

Carney says ready to stay longer at Bank of England

Bank of England Governor Mark Carney said on Tuesday he was ready to extend his time in charge of the central bank to help Britain's economy as it leaves the European Union.

David Pollard reports.

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Carney says ready to stay longer at Bank of England

As talk of a so-called 'no-deal scenario' gets stronger, Britain's bracing for Brexit shocks.

But at least the inconvenience of a central bank governor leaving his job months after Britain leaves the EU in March next year is unlikely to be one of them.

(SOUNDBITE) (English) BANK OF ENGLAND, GOVERNOR, MARK CARNEY, SAYING: "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." Those words confirming he is willing to stay on beyond his due departure in June.

An official announcement has yet to be made - but the comments come after days of speculation in the media ... And the markets.

SOUNDBITE (English) SWISSQUOTE BANK HEAD OF MARKET STRATEGY, PETER ROSENSTREICH, SAYING: "The uncertainty is the biggest ... drag on the UK economy, more than the, you know, what actually happens.

So having the continuity of a key central banker, I think, is critical." The pound liked it too, traders nudging sterling up on Carney's words.

Against the euro, it suffered its biggest daily drop in three months on Monday.... When the EU's chief Brexit negotiator Michel Barnier said he strongly opposed the UK's latest proposals for a deal.

A new Reuters poll puts the chances of Britain leaving without one, at one in four.

(SOUNDBITE) (English) BANK OF ENGLAND, GOVERNOR, MARK CARNEY, SAYING: "There's going to be a period of adjustment if we're moving quickly to a WTO type relationship, and it is likely given the pace of wage growth at present and given the inflation effects that my colleagues have described that the real incomes squeeze will return for households." No deal would cause sterling to fall again but it would rise on an agreement, he added.

But Britain's hard-pressed consumers shouldn't take too much heart .... After a rate hike last month, a path of gradual increases is still needed, he said, to keep inflation on target.

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Credit: Financial Times - Published on October 4, 2018 

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