Mark Carney calls on Germany to foot Eurozone’s risk January 28, 2015 Eurozone countries should share more risks and allow taxpayers’ money to circulate more freely as it does between countries in the UK, Mark Carney said in an unusually outspoken address last night. The Bank of England governor hinted that Greece’s troubles would be less severe if it could access more German money, comparing the situation [...]
Mark Carney slams Eurozone austerity and urges common fiscal policy January 28, 2015 Mark Carney has launched a withering attack on the Eurozone's pursuit of austerity and urged a new course for European fiscal policy. Speaking in Dublin, the governor of the Bank of England warned the Eurozone could suffer another lost decade of stagnation and unemployment. "Since the financial crisis all major advanced economies have been in [...]
Mark Carney: Scotland can ride oil price drop thanks to Union January 14, 2015 Bankof England (BoE) governor Mark Carney yesterday said that falling oil prices were a negative shock to the Scottish economy. “While it is a net positive to the UK economy – the change in the oil price – it is a negative shock to the Scottish economy,” Carney said. However, Scotland’s economic fortunes are reassured [...]
Mark Carney says deflation is possible and wouldn’t be a problem, refuses to be tied to date for interest rate hike January 13, 2015 Mark Carney has tonight refused to rule out the UK entering deflation after figures from the Office for National Statistics revealed the Consumer Price Index slowed to just 0.5 per cent in December. Speaking to ITV, the governor of the Bank of England said that deflation was possible “in a given month on a year-on-year [...]
Mark Carney set to write inflation letter next month January 12, 2015 INFLATION is expected to have dropped too far below the Bank of England’s target, prompting an embarrassing letter from Mark Carney to George Osborne to explain what went wrong. But instead of sending the letter the moment the inflation data is published – at 9.30am this morning – the governor of the Bank will now [...]
Mark Carney’s Bank of England stress tests lived up to their name December 16, 2014 The Bank of England certainly knows how to conduct a stress test. It even managed to give the City’s hacks a stress test of their own at the crack of dawn yesterday. The press briefing began at the impolite hour of 5am and was punctuated by a power cut and subsequent change of venue. Having [...]
Mark Carney: Stress test proves banks are “significantly more resilient” December 16, 2014 Mark Carney, the governor of the Bank of England (BoE), has said the results of today’s stress tests prove the new-found resilience at the core of the banking sector. Seven banks and Nationwide building society were tested, with only one, Co-operative Bank, failing. The test scenario was considered especially harsh and included two years of [...]
Mark Carney says UK economy is still in need of stimulus November 25, 2014 Bank of England governor Mark Carney signalled a dovish tone while speaking to MPs yesterday, despite insisting that the UK’s monetary policy will not be loosened even further. Carney told the Treasury Select Committee that Britain was “still an economy that requires monetary stimulus”, despite an expected growth rate of above three per cent this [...]
Is Mark Carney right that clawback may need to cover all bankers’ pay, not just bonuses? November 17, 2014 Alex Edmans, a finance professor at London Business School and Wharton, says Yes. Pay packages should ensure that executives act in the long-run interest of their firms. Short-run bonuses incentivise bankers to boost near-term earnings at the expense of long-run value – such as writing subprime loans or manipulating rates. Clawbacks will deter myopic actions, [...]
Mark Carney: EU bonus cap has “unfortunate” side-effects – reform bankers’ pay instead November 17, 2014 Bank of England governor Mark Carney says massive fines for bad behaviour among bankers hasn't done enough – and that their pay may be overhauled even further in order to "help rebuild trust in financial institutions". New measures could include "clawback" options for bankers' salaries as well as their bonuses, and even paying out "performance [...]