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

Beyond the Brexit talk, the British economy isn’t doing too badly
Economy

Beyond the Brexit talk, the British economy isn’t doing too badly

The political Brexit pantomime aside, Britain is in pretty good shape. With near-record employment, strong wage growth and modest inflation, there is …
17 Oct 2019
Spare us these desperate measures
UK Economy

Spare us these desperate measures

Struggling firms are trying to reinvent themselves. Some are going to have to get much more radical
21 Sep 2020
Universal Credit comes good
UK Economy

Universal Credit comes good

The government’s benefit reforms have been plagued with disasters since their introduction in 2013. The Covid-19 crisis, however, has revealed a posit…
21 Sep 2020
Bad data is driving fear of a second wave of Covid-19
UK Economy

Bad data is driving fear of a second wave of Covid-19

The recent spike in Covid-19 “cases” is very different to the original outbreak, says James Ferguson of MacroStrategy Partnership. The government need…
18 Sep 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020