The pro-Brexit lawmakers are still infuriated about Mark Carney’s comments ahead of the EU referendum. Now, with uncertainty about the BoE governor’s position. They argue that BoE Mark Carney should step down.
31 October, AtoZForex – Mark Carney, Bank of England Governor, is currently deciding whether to keep his position or to step down. The central banker has been supported by some who argue that his prompt reaction to the June referendum prevented a market panic. Otherwise, the panic could destabilize the global economy. However, his pre-referendum alerts in regards to the potential costs of exiting from the EU incensed a number of pro-Brexit lawmakers. Now, many of them would like him to leave the position.
BoE Mark Carney should step down
Daniel Hannan, a member of the European Parliament and a Brexit campaigner, commented that Mark Carney should step down as “he politicized his office inexcusably”. Among other officials who want the central banker to leave are Jacob Rees-Mogg, a member of the Conservative Party, and Nigel Lawson, who served as Treasury chief under Margaret Thatcher.
BoE governor made a promise to the government that he would decide whether to step down or to stay an additional three years to complete the full eight-year term until the end of this year. In case Theresa May, UK’s Prime Minister, prompts a two-year window for EU divorce discussions before the end of March, Mark Carney might leave before Britain officially exits the EU. According to some investors, if Mr. Carney steps down during such a crucial moment, confidence in the UK’s economy could be undermined. Hence, it is better if Mark Carney makes the decision sooner than later.
Although Mark Carney is under fire from Brexit campaigners, Philip Hammond, Treasury chief has commented that he would be “delighted” if Mr. Carney carried on. According to the bank’s governor, he still has to thoroughly discuss his future plans with Mr. Hammond. In addition, he said that the decision on whether to stay at the BOE after mid-2018 would be an “entirely personal decision”.
Theresa May criticizes the BoE’s monetary policy
Theresa May has recently criticized the BoE’s monetary policy stating that the low-interest rates have helped the rich, whilst done little for the poor. In response to these commentaries, Mr. Carney said that the BoE was “not going to take instruction on our policies from the political side.”
This upcoming Thursday, Mark Carney and other members of the BoE’s Monetary Policy Committee will decide whether to ease policy further or not. The majority of economists anticipate officials to postpone the decision as the recent data turned to be better than forecasted.
Think we missed something? Let us know in the comment section below!