Bank of England: the Old Lady has new faces

Governor Mark Carney has embarked on the Bank of England's biggest shake-up since the Bank was granted its independence.

The Bank of England has embarked on its biggest shake-up since being granted independence in 1997. Governor Mark Carney appointed two new deputy governors: Nemat Shafik, poached from the International Monetary Fund, will take charge of the markets and banking portfolio. She will deal with the aftermath of the forex and Libor (interest-rate-fixing) scandals and unwind the Bank's quantitative-easing programme.

Ben Broadbent, who has been on the interest-rate-setting committee since 2011, will oversee monetary policy. Two other deputieswill manage prudential regulation ofthe banks and financial stability.The reshuffle is to help ensure that Britain can avoid another financial crisis.

What the commentators said

"Vital" as revamping the organisation's corporate governance is, don't count on it, said Allister Heath in City AM. Carney himself has warned that our historically low interest rates risk creating another bubble, but he remains "too complacent about housing and too dovish about the rate at which interest rates are likely to have to rise".

Throw in the "insouciance of the commercial banks when it comes to curbing past excesses", agreed Philip Stephens in the Financial Times, and it is hard to "predict a quiet ride for the governor".

Recommended

Are recession fears justified? Maybe it’s time to look on the bright side
Economy

Are recession fears justified? Maybe it’s time to look on the bright side

There's a lot to feel nervous about right now, and many people are worrying about an impending recession. But it's by no means certain, says John Step…
28 Jan 2022
Inflation: now we really have something to worry about
Inflation

Inflation: now we really have something to worry about

We’ve been worrying about a sharp rise in inflation for years, says Merryn Somerset Webb – now, we finally have something to worry about.
21 Jan 2022
UK inflation is at a 30-year high and it hasn’t peaked yet
Inflation

UK inflation is at a 30-year high and it hasn’t peaked yet

UK inflation has hit 5.4% - its highest in 30 years. And it could be heading higher. John Stepek explains what it means for you and your money.
19 Jan 2022
The UK jobs market is booming – but wages are struggling to keep up with prices
UK Economy

The UK jobs market is booming – but wages are struggling to keep up with prices

Britain’s jobs market is booming, with wages rising and plenty of of vacancies. But inflation is rising faster than wages can keep up. John Stepek loo…
18 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022