I may quit before we leave EU, hints bitter Bank chief
MARK Carney refused to rule out quitting as Bank of England Governor last night as he issued a fresh warning over the impact of Brexit.
Appearing before the House of Lords yesterday, Mr Carney – who has a stormy relationship with Theresa May – signalled he could leave his post before Britain quits the EU.
And in an echo of the Project Fear tactics used during the referendum, he said global banks in the City of London may ‘adjust some activity’ in response to Britain’s vote to leave.
Mr Carney said: ‘We are aware of the contingency plans that are in varying stages of readiness at these institutions.
‘There are some institutions who would be in a position to adjust some activities over the course of the next year if they saw fit – that’s if they saw fit.’
The Governor mounted a staunch defence of the current record-low interest rates – criticised by Mrs May – and dismissed fears that the City would collapse because of Brexit.
When asked about his future, Mr Carney said: ‘I want some time to reflect on it. To be absolutely clear, it’s an entirely personal decision.
‘No one should read anything into that decision in terms of government policy, actual, imagined, potential, past, etc. Like everyone, I have personal circumstance I have to manage. This is a role that requires total attention, devotion, and I intend to give it for as long as I can.’
The Canadian’s early departure might be welcomed by critics who believe he undermined the Bank’s independence with warnings Brexit could spark a recession. Last month, Lord Lawson called on Mr Carney to stand down after criticising his ‘disgraceful’ conduct over Brexit.
The former chancellor accused the Canadian of joining ‘the chorus of scaremongering’ during the referendum campaign.
Earlier this month the Prime Minister publicly rebuked Mr Carney by criticising his policy of ultra-low interest rates and printing money, saying too many had lost out.
Mrs May told the Conservative Party conference that record low rates had penalised savers, pensioners and aspiring homeowners but benefited the wealthy, adding: ‘A change has got to come.’
However, although Mr Carney told peers yesterday that he understood the ‘frustrations’ of savers over his monetary policy, he insisted that most had benefited.
He was also asked about dire warnings that the banking sector could flee London because of the Brexit vote. It follows a warning by British Bankers’ Association chief executive Anthony Browne that lenders’ hands were ‘quivering over the relocate button’.
Mr Carney said global banks in the City may ‘adjust some activity over the course of the next year’. There were a ‘range of possible adjustments’ the Government could make with Europe which would allow activities to continue for a wide range of banks, he said. It is feared that markets could be
‘Chorus of scaremongering’
spooked if Mr Carney makes a sudden decision to quit.
The average price of a home is still expected to be £44,000 higher in five years’ time despite the uncertainty caused by Brexit, say economic forecasters.
But the Centre for Economics and Business Research added that the pace of growth in property values will more than halve during 2017 as jitters over a ‘hard Brexit’ help dampen the market.
But by 2021 the average property is expected to be worth £254,000 – £44,000 more than it is now.