Tuesday, November 1, 2016

Opposed to Brexit, the governor of the Bank of England due to the resistance to its post – World

The “Brexiters” wanted Mark Carney, considered politically too involved, left his job in 2018. It will remain finally until 2019.

the governor of the Bank of England, Mark Carney, on Monday 31 October, London.

tsunami policy triggered in the Uk by voting in favour of the Brexit has swept over the Bank of England (BoE). For months, its governor, Mark Carney, was accused by the most ardent “Brexiters” to have played a political role. His crime, according to them, is to be taken out of its reserve of high employee and have taken up the cause for the retention in the european Union (EU).

These critics demanding the removal from his post of governor in 2018, when its original mandate was to end. In the Face of them, the supporters of Mr. Carney, the head of which Philip Hammond, the chancellor of the Exchequer, wished that it remains up to the maximum limit of 2021.

Read also : uk growth is resistant to the Brexit in the third quarter

Monday 31 October, a compromise was found. After a meeting of more than an hour and a half to Downing Street, Mr Carney announced that he would leave in June 2019. He saves face by not complying with the requirements of the Brexiters. Theoretically, this date allows him to remain in his position until the actual release of the United Kingdom of the EU, scheduled for the spring of 2019. the ” This should help to contribute to an orderly transition to the new relationship of the United Kingdom with Europe “, ” he says in a letter addressed to Mr. Hammond.

Mr Carney also of the personal circumstances to explain his departure. The Canadian, who has children in college and high school, had, from the beginning of its mandate, in 2013, stated that it does not extend beyond 2018. Recently, he had left it to hover in doubt. But on Monday night, he used his family situation to justify his departure in 2019.


The battle around Mr. Carney has been very virulent. During the referendum campaign on the 23rd of June the governor had warned of the economic risks in the event of a Brexit. He had even considered a possible ” technical recession “, two consecutive quarters of contraction, in the months that would follow the vote.

These predictions have proved to be excessively pessimistic, at least for the moment. Uk growth resists, the gross domestic product rose 0.5 % in the third quarter.

also Read : After Brexit, great recovery plan of the Bank of England

Since then, the Brexiters dream of revenge. Theresa May during her speech at the beginning of October, before the annual convention of the conservative party, has provided them with ammunition. the ” If monetary policy, with interest rates super-low and the “quantitative easing” , [QE, qe] has provided the emergency medication needed after the financial crisis, we must recognize its negative effects. People who have assets have become more rich. Those who have not have suffered. (…) this needs to change. “

” It is a bad loser “

If it is shared by many analysts, this attack has broken a political taboo : for the independence of the BoE, in 1998, the government is not critical, in principle, not directly the monetary policy. Some Brexiters have stepped into the breach. Michael Gove, one of the leaders of the campaign to exit the EU, has recommended to Mr. Carney ” a little humility “.

Jacob Rees-Mogg, a conservative mp ranked among the most extreme opponents of the EU, has called for his resignation. the ” every occasion, he said of the evil of the british economy and finds that the negative, which is not the job of the governor of the Bank of England. It doesn’t seem to want to accept the outcome of the referendum and turn the page. It is a bad loser. “

Read also : The Bank of England will leave its key rate unchanged

This apparent questioning of the independence of the BoE’s concern in economic circles. the ” The United Kingdom is facing a very troubled period that will be demanding for all leaders, points out Howard Archer, economist at IHS Global Insight. Shoot on sight on the governor of the Bank of England, or may seem to call into question his independence does not help. “

” The patient zero of the defamation eurosceptic “

Cautious, Mme May was also decreased, making late known his support to Mr. Carney. This episode illustrates the harshness of the regulations of current account to the head of the british State.

According to Janan Ganesh, columnist at the Financial Times, the fate that has known the governor of the BoE is only a warning shot. the ” Mr. Carney is the patient zero of the defamation eurosceptic : the first victim of the justice of the victors, which is going to spread to the other persons of the public life that have been troublesome during the referendum campaign. “

also Read : Bank of England ready to cut rates

It is estimated that the next in the line of sight could be the chancellor of the Exchequer, Philip Hammond, who is today the strongest advocate of a “Brexit soft” within the government. According to Mr. Ganesh, the “Brexiters” ” today the power in this country “. The difficulties of Mr. Carney are a prime example.


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