Britain better off if Carney stays 31 Oct 2016 The governor’s tenure has become a test of the Bank of England’s status. If he left in 2018 the decision would spook foreign investors and embolden the bank’s domestic critics. Extending his term would signal that the British government still values independent monetary policy.
Inflation is next nerve-jangler for investors 18 Oct 2016 After years of undershooting price targets, some rate-setters, including Mark Carney in Britain, are now talking about tolerating overshoots. Equity winners will vary depending on whether inflation is of the good or bad variety. But global bonds are losers either way.
Inflation shows up at wrong time for Mark Carney 18 Oct 2016 UK consumer prices are rising at their fastest pace in nearly two years. It should be a proud moment for the Bank of England chief, who has been struggling to achieve exactly this. Unfortunately, the pound’s fall is going to give him a bit too much of what he wanted.
BoE’s credit bazooka is misfiring – again 13 Oct 2016 Bank of England Governor Mark Carney’s corporate bond-buying programme is failing to lower company borrowing costs. As in 2009, the bank can be accused of not being aggressive enough. Then again, Prime Minister Theresa May’s lukewarm support doesn’t help.
Carney guessing game feeds bond market distortion 13 Sep 2016 The Bank of England has revealed corporate bonds eligible for its 10 billion pound buying spree. Its requirement that companies make a material contribution to the country still throws up some anomalies. Second-guessing the central bank makes capital markets less efficient.
Mark Carney’s sledgehammer isn’t up to the job 4 Aug 2016 The Bank of England boss deserves credit for trying. He has halved the policy rate, will resume asset purchases, and done his absolute best to limit the perverse effects of ultra-low rates. But the economic shock of Brexit is probably bigger than anything his toolbox can handle.
Mark Carney picks good time to confound markets 14 Jul 2016 Sterling rose and UK stocks fell after the BoE left rates unchanged. Its governor's recent remarks had fanned expectations of an easing sooner rather than later. But Carney can afford to reprise his "unreliable boyfriend" persona: such market moves are the least of his worries.
Assault on UK privilege has many possible targets 14 Jul 2016 Theresa May wants to focus on more than the "privileged few". If Britain's new prime minister is serious, the most glaring disparities are in pensions, savings, housing and infrastructure. Action in these areas would go some way to healing north/south and young/old rifts.
Carney will be bit player in averting UK recession 12 Jul 2016 Bank of England boss Mark Carney can easily justify easing policy this week. Yet driving policy rates and gilt yields to new record lows is of limited use when investment and spending are held back by fear and uncertainty. Fiscal policy can do more to shore up the economy.
Mark Carney needs wooing, not whipping 29 Jun 2016 The BoE chief's pre-vote warnings of the risks of an EU exit made him a target for leaver ire. But with both main political parties in turmoil, Carney is a rare stabilising force. The priority is pressing him to stay beyond his tentative 2018 departure date, not pushing him out.
UK banks have range of Brexit shock absorbers 23 Jun 2016 British lenders can weather the storm if Britons vote to leave the EU. Banks will no doubt be hit should the economy slow. But it’s harder for them to go bust than it was in 2008. They have bigger liquidity backstops to cope with any bank run - and so does the Bank of England.