Business World

Wednesday 17 September 2014

New UK bank head to bring 'outsider' view

Greg Quinn

Published 18/02/2013 | 04:00

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The incoming governor of the Bank of England, Mark Carney, says he will help with the "re-founding" of the UK's central bank when he takes over later this year.

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He also intends to encourage broader talks on improving Europe's economic performance, he said.

"The value of me going there to the institution is to bring a different perspective," Mr Carney said in an interview with Canada's CTV News.

The Canadian plans to "be a bit of an outsider, to help with the reform, the re-founding, of the Bank of England, to think with the colleagues at the Bank and more broadly in the UK and Europe about policy options to really get those economies going and fix those financial systems".

Mr Carney leaves his job as Bank of Canada governor on June 1 to start work in London a month later, after being named in November as the surprise choice to lead the institution that was created in 1694.

He will keep his other job as chairman of the Financial Stability Board, the Basel, Switzerland-based body that is concerned with writing rules to avoid another global financial crisis.

Asked about the high expectations that come with his selection to the UK central bank, Mr Carney said he will get "the full power of that institution focused on the right things, focused on price stability, focused on growth, repairing the financial system and helping to reform the global system and European system".

The Bank of England said on February 13 that inflation will remain above its 2pc target for the next two years and risks to the economic recovery are weighted to the downside.

The central bank's Inflation Report said that the outlook for consumer-price growth is higher than forecast in November because of the weaker pound and increases in energy bills.

Mr Carney told CTV that major central banks still have room to add stimulus to economies, and should ensure that any new measures introduced are consistent with their mandates. (Bloomberg)

Irish Independent

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