Brexit Has Hit UK’s Economic Openness, Says Bank of England Governor

GUARDIAN EUROPE: Andrew Bailey says free trade demands greater international cooperation on financial rule-making

The governor of the Bank of England has called for greater cooperation on financial rule-making, warning that Brexit has affected the “openness of the UK economy”.

In an apparent swipe at those calling for the UK to develop a separate rulebook for banking and insurance activities, Andrew Bailey said free trade needed strong regulation based on agreements with foreign watchdogs.

Speaking in Dublin at a financial services conference organised by the Irish central bank, he argued against trade protectionism and regulatory fragmentation.

“As a public official, I take no position on Brexit per se,” Bailey said. “That was a decision for the people of the UK.” » | Phillip Inman | Wednesday, November 8, 2023

Brexit has helped the City, not harmed it despite 'pretty dire' warnings from economists and experts, says Bank of England governor Andrew Bailey: • Bank of England governor says Brexit opportunities have 'protected' Britain • Mr Bailey said Britain had defied 'dire' warnings from economists and experts • Comments are a marked shift from his immediate predecessor Mark Carney »

If my memory serves me well, Andrew Bailey, the Governor of the Bank of England, at the time of the Brexit Referendum advocated for the UK to leave the EU. I am almost certain that he was an ardent Brexiteer. – © Mark Alexander

Brexit and Drop in Workforce Harming Economic Recovery, Says Bank Governor

THE GUARDIAN: Andrew Bailey also said disastrous mini-budget had damaged Britain’s international reputation

Britain is suffering worse economic performance than its rivals because of Brexit and a stark drop in the size of the workforce since the Covid pandemic, the governor of the Bank of England has said.

Andrew Bailey said a combination of headwinds had prevented the economy from recovering to pre-pandemic levels, while warning it would also take time for the government to repair damage to Britain’s international reputation caused by the disastrous mini-budget under the former prime minister Liz Truss.

It came as rampant inflation of 11.1% – the highest figure since October 1981 – piled more pressure on the Bank to continue raising interest rates.

In a downbeat assessment on the eve of the chancellor’s autumn statement, the Bank’s governor told MPs on the Commons Treasury committee: “I’m afraid it’s not a good story.” » | Richard Partington, Economics correspondent | Wednesday, November 16, 2022

Mini-budget Will Likely Mean Higher Interest Rates, Warns Bank of England Governor

THE GUARDIAN: Andrew Bailey says UK borrowers can expect to feel impact of Truss government’s tax and spending decisions

Governor of the Bank of England, Andrew Bailey, says extra stimulus in last month’s mini-budget would force the Bank into tougher-than-expected action. Photograph: Drew Angerer/Getty Images
UK borrowers can expect to face higher interest rates as a result of the Truss government’s tax and spending decisions during its six weeks in power, the governor of the Bank of England has warned.

Despite the U-turn on corporation tax on Friday that saw the sacking of Kwasi Kwarteng as chancellor, Andrew Bailey said the extra stimulus provided in last month’s mini-budget would add to inflation and force the Bank into tougher-than-expected action.

Bailey said he had impressed on the new chancellor, Jeremy Hunt, the need for the public finances to be sustainable and that there had been a “clear and immediate meeting of minds”. Hunt used his first interview to stress mistakes made by Truss would require “difficult decisions” to be made. » | Larry Elliott | Saturday, October 15, 2022

Capitalism Is Doomed If Ethics Vanish, Says Bank of England Governor

'We simply cannot take the capitalist system for granted,' says Carney.

THE GUARDIAN: Mark Carney issues strong critique of City behaviour and warns of growing sense that basic social contract is breaking down

Capitalism is at risk of destroying itself unless bankers realise they have an obligation to create a fairer society, the Bank of England governor has warned.

Mark Carney said bankers had operated a "heads-I-win-tails-you-lose" system. He questioned whether traders met ethical standards and said that those who failed to meet high professional standards should face ostracism.

Speaking at a City conference, the Bank's governor warned that there was a growing sense that the basic social contract at the heart of capitalism was breaking down amid rising inequality. "We simply cannot take the capitalist system, which produces such plenty and so many solutions, for granted. Prosperity requires not just investment in economic capital, but investment in social capital."

In a strongly worded critique of City behaviour in the run-up to the financial crisis, Carney said market radicalism and light-touch regulation had eroded fair capitalism, while scandals such as the rigging of Libor markets had undermined trust in the financial system.

"Just as any revolution eats its children, unchecked market fundamentalism can devour the social capital essential for the long-term dynamism of capitalism itself. To counteract this tendency, individuals and their firms must have a sense of their responsibilities for the broader system."

Carney told delegates at a conference on inclusive capitalism in London – which was attended by the former US president Bill Clinton – that big banks had operated in a "heads-I-win-tails-you-lose bubble", with personal gain hotly pursued by bankers. » | Angela Monaghan | Tuesday, May 27, 2014

Mark Carney and His Stupid ‘Forward Guidance’

Mark Carney: No Need for an Immediate Rate Rise

Mark Carney, Canadian Governor of the Bank of England

THE DAILY TELEGRAPH: Bank of England governor seeks to reassure markets that interest rate rise is not imminent, saying he doesn't want to focus on one indicator

Bank of England Governor Mark Carney has pledged there will be no “immediate” increase in interest rates as unemployment nudges closer to the 7pc threshold in an apparent softening of his forward guidance policy.

He said Bank of England policymakers look at “overall conditions in the whole labour market”, rather than just one indicator, and that any change, when it comes, would be “very gradual”.

The governor, who said that the UK economy was "in a different place" to when he introduced the guidance, added: “We don’t see an immediate need to change monetary policy."

Asked if he would consider lowering the 7pc threshold, Mr Carney added: “There are a broad range of things we could do, I wouldn’t jump to that conclusion … we’re trying to get across is that it’s all about overall conditions in the labour market.

“We wouldn’t want to detract from that focus by unnecessarily focusing on one indicator.” » | Denise Roland | Thursday, January 23, 2014

My comment:

"No need for an immediate rise [in interest rates]" – Mark Carney

No, there is no need for him. He's sitting pretty with his huge salary and exorbitant expenses. The rest of us have to make ends meet from our savings. What a thoughtless, unreasonable man Carney is!

Never in my lifetime can I remember not being able to get interest on my capital that at least equates to the rate of inflation, and then some. Does this man have no sense of true capitalism? Does this man have no sense of economic history?

What an utter disappointment this Governor is! – © Mark

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