POLITICS

Mark Carney Finally Hits Back At Theresa May For Conference Speech

Thinly veiled criticism of those who blame central bankers.

15/11/2016 11:56
Bloomberg via Getty Images

The Governor of the Bank of England (BOE) has hit out at critics of central bankers, in an apparent swipe at Theresa May.

Speaking at a select committee hearing, Mark Carney said that “excessive focus” on monetary policy is a “massive blame deflection exercise”.

In her conference speech in October May blamed the Bank of England for rising inequality in the UK.

“Because while monetary policy – with super-low interest rates and Quantitative Easing – provided the necessary emergency medicine after the financial crash, we have to acknowledge there have been some bad side effects,” she told the conference hall.

JACK TAYLOR via Getty Images

 “People with assets have got richer. People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer.  A change has got to come. And we are going to deliver it.”

But today Carney slammed those who blame central bankers for inequality, saying there are “much more fundamental factors” at work.

“It’s very important to distinguish between the stance of monetary policy and the reasons why global interest rates are low, the reasons why inequality has increased across major economics.

“Those are caused by much more fundamental factors. And an excessive focus on monetary policy in many respects is a massive blame deflection exercise.”

There has been speculation over a rift between the Prime Minister and the BOE Governor since her critical Conference speech, but this was dampened after Carney stated his intention to stay in his post until 2019.

Today Carney confirmed he would not stay on any longer, should Brexit be delayed.

Speaking at a hearing of MPs on Tuesday, Mr Carney said there were “reasonable limits” to any possible extension to his stay, as he would be separated from his family during that time.

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