Mark Carney Displays "Remarkable" Foresight!

Mark Carney tells the Treasury Select Committee that 'there will be material moves' in the value of the pound in the run up to the October 31 Brexit deadline.

He says those moves could go either way depending on events. 📈📉

— Jack Maidment (@jrmaidment) October 15, 2019

Carney Talking The Bleedin' Obvious!

Mark Carney, the Governor of the Bank of England, hints at interest rate cuts in the event of a No Deal Brexit.

He tells the Treasury Select Committee that in such a scenario it would be "more likely that we would provide some stimulus".

— Jack Maidment (@jrmaidment) June 26, 2019

Markets Ignore Carney's Tantrum

The pound has finished up on the day after international currency traders laugh off Mark Carney's politically motivated bed wetting. pic.twitter.com/xI2HzED4ug

— Peter Thompson (@P_G_Thompson) November 28, 2018

Carney Deliberately Obfuscates The Markets

01-Nov-2018 12:31:16 - BANK OF ENGLAND'S CARNEY SAYS UK FISCAL POLICY IS SHIFTING TO A MORE ACCOMMODATIVE STANCE

This comes 20 minutes after signalling faster rates.

Clear as mud.

— Martin Baccardax (@mdbaccardax) November 1, 2018

Carney Crashes The Property Market

It used to be said that the governor of the Bank of England could correct irresponsible behaviour in the City with a discrete raise of his eyebrows.

Mark Carney has eschewed the twitching of eyebrows by blasting out his doomsday fears with a foghorn, or more accurately, by telling the Cabinet (which is leakier than the Titanic) that in the event of a no deal Brexit property prices will collapse by 35% in three years.

All very well and "cautious" maybe, if the comments had remained private. However, as he well knew, they would leak (and leak they did). Thus in the space of a few hours, Carney has crashed the property market and with it the British economy.

The Treasury has made much of the fact that Carney has been persuaded to stay on until 2020, in order to "steady the ship". Yet here is is deliberately trying to sink the ship with project Fear II.

This man should be removed from office ASAP, as he is trying to force his personal political agenda down our throats!

Mark Carney To Step Down in 2019

*BOE'S CARNEY EXPECTED TO STEP DOWN IN 2019: MAY'S SPOKESMAN

— Hilary (@queenofchartz) September 3, 2018

Despite being asked to stay on beyond 2019 to help steer the UK through Brexit!

Rates Rise To 0.75%

Yesterday's decision by the MPC to raise fates to 0.75% is a farcical waste of time.

Come next year's Brexit crash the rate rise will have to be reversed.

Methinks Carney knows this, hence a rise now gives him more to cut next year eg by 0.5% or even 0.75%; which, theoretically, might have a more of a psychological impact.

Xavier Rolet Falls On His Sword

The Telegraph reports that outgoing London Stock Exchange chief executive Xavier Rolet is to step down “with immediate effect” after a furious row between the company’s board and one of its shareholders over his departure.

Mr Rolet had been due to remain in his job until December 2018 but today said he had agreed to leave straight away, just one day after Bank of England Governor Mark Carney indicated that he did not back calls by one of the LSE’s biggest investors for him to stay on until 2021.

"We can’t envisage a situation where a CEO stays beyond the agreed period," Mr Carney said at a conference on yesterday, adding that he was “mystified” by the row.

The news follows weeks of acrimony between the board and Sir Christopher Hohn, founder of the Children’s Investment Fund (TCI), who accused the LSE’s chairman Donald Brydon of forcing Mr Rolet out against his will.

Mr Rolet said he was leaving amid “a great deal of unwelcome publicity” and would not be returning to the board or the job “under any circumstances”.

I will leave the final word to Francis Urquhart:

"Even the longest, the most glittering reign must come to an end someday."

Carney's Cake and Consumption Doubts Nixes Rate Rise

The time is not right for an interest rate rise, Bank of England Governor Mark Carney has said.

Citing falling wage growth and Brexit uncertainty.

"Before long, we will all begin to find out the extent to which Brexit is a gentle stroll along a smooth path to a land of cake and consumption."

A wee barb there methinks!

Bank of England Rejects Project Fear

Carney Admits Project Fear Was Wrong

Mark Carney, currently Governor of The Bank of England, has finally admitted that the EU has more to lose from Brexit than the UK.

He also admitted that Britain's economy will defy his own gloomy forecasts, that formed the bedrock of Project Fear,and grow at a faster rate than expected.

The Bank of England is now “very likely” to improve its economic forecast next month, Mr Carney said as he said he was “surprised” that the economic slowdown that he forecast has not materialised.

He is quoted by the Telegraph:

"In the run up to the referendum we felt that it was the largest risk [to the economy]. There were a series of things that could have happened that would have had financial stability consequences. Of course having got through the night the day after the scale of the immediate risks around Brexit have gone down.

I am not saying there are greater short term risks on the continent in the transition than there are in the UK."

The question is, how much longer will he remain in his job?

Carney To Stay Until 2019

Mark Carney will stay at his post as Governor of the Bank of England until 2019.

This is a face saving measure, doubtless thrashed out during yesterday's meeting with Theresa May, to avoid further uncertainty in the markets caused by speculation over his position. It also allows him time to get back to Canada in order to stand in the October elections there in 2019.

Carney In The Hotseat

LATEST: Mark Carney says he didn't raise Bank of England's #Brexit view with George Osborne https://t.co/mYVlRpxiFf https://t.co/p9XvcKNUSn

— Bloomberg (@business) July 12, 2016

Kudos To Mark Carney

Kudos to Mark Carney (Governor of the Bank of England) for doing a bang up job, during very difficult times, given that our political masters have abrogated responsibility for everything!

Britain Wins Currency War

Mark Carney  (Governor of the Bank of England) yesterday said that a deteriorating outlook meant action from the Bank was likely this summer. In other words rates will be cut, and quantitative easing (helicopter money) will be applied.

It is ironic that little over a week ago Project Fear was telling all and sundry that Brexit would lead to increased rates as Sterling would fall through the floor.

Sterling has fallen, but it has now levelled out at around $1.33 and markets are gradually rising.

As I have stated before, a fall in Sterling will make British assets look cheap to international investors. More to the point, central bankers around the world would sell their grandmothers to have been given an opportunity to stage a one off devaluation of their currencies that Carney was given courtesy of Brexit.

The currency wars are upon us, and Britain has managed to achieve victory without firing a single monetary shot.

Bank of England Rubbishes Greek Deal

* Bank of England's Carney says Greek deal has "big execution risks" on all sides, debt not sustainable in current form - RTRS

— Fabrizio Goria (@FGoria) July 14, 2015

Inflation at 0.5%

Inflation (CPI) has fallen to 0.5% in December, the joint lowest level ever.

Mark Carney, Governor of The Bank of England, has to write to the Chancellor to explain why the 2% inflation target has been missed, ie why we are in a protracted period of deflation.

As I have noted many times before on this site, there is no way interest rates will be raised anytime soon (despite what the so called economic "experts" and analysts have been warning about for the last few months).

Banks' Creditors To Take The Hit

Mark Carney, the Governor of the Bank of England, wants creditors to be bare banks' losses (rather than the taxpayer).

He is quoted by the Telegraph:

"Once implemented, these agreements will play important roles in enabling globally systemic banks to be resolved without recourse to public subsidy and without disruption to the wider financial system."

The proposals are set to be agreed on by the G20 next year, and must be implement by banks by 2019.

This is all very well and dandy. However, it will mean higher costs for the customers of the banks; as the creditors will expect a greater return for the risks that they bare.

Interest Rates To Rise, But Not Yet

Mark Carney, Governor of The Bank of England, said strong growth and rapid job creation meant the judgement about when to start raising interest rates had become “more balanced”.

He is quoted by the Telegraph:

“Relative to the recent past, the economic outlook is much improved.

While there is always uncertainty about the future, you can expect interest rates to begin to increase.” 

Rest assured, as I have noted many times before, there will be no increase in rates until after the general election in May 2015.

Rates Will Rise When They Rise

Mark Carney, Governor of The Bank of England, is proving to be something of a Delphic Oracle.

He spoke at a business conference in Glasgow and expressed concerns about a housing bubble developing. Yet, in the same speech, he also noted that the Bank was not worried about the house prices themselves but was worried about household debt.

He noted that interest rates will be "materially lower" in the medium term than they have been historically.

When will rates rise?

Carney is quoted by the Telegraph:

“The clearest indication of when rates will rise is when they rise.”

I personally do not see them rising before next May's general election.