New Bank of England Governor Carney faces grilling from MPs
Sunday 03 February 2013
Incoming Bank of England Governor Mark Carney faces his first public grilling on British soil this week as rate-setters decide whether to pump more stimulus into the UK's flat-lining recovery.
Mr Carney, who succeeds Sir Mervyn King in July, will field questions from the Treasury Select Committee on the future of the Bank's 2 per cent inflation target and how to kick-start the UK economy during a three-hour hearing on Thursday.
But the Bank of Canada chief is also likely to have to fend off questions from politicians over the £874,000 package offered by the Chancellor to win his man, a deal which makes Carney the world's highest-paid central bank chief. It includes a £250,000 housing allowance, but Mr Carney's basic salary also dwarfs the £303,000 a year earned by Sir Mervyn.
Mr Carney ducked questions over the future of monetary policy at the World Economic Forum in Davos, after previously triggering a debate over whether the UK should adopt a growth target instead of the current inflation target.
Citigroup economist Michael Saunders said: "They will ask him whether we should change the inflation target, and that will be very interesting. He'll find it very difficult to fudge a committee of MPs."
Mr Carney's future colleagues on the Bank's monetary policy committee will vote on whether to pump more money into the economy through quantitative easing (QE).
Most economists expect rate-setters to hold fire as the Bank's Funding for Lending scheme frees up credit availability. However, the shock 0.3 per cent decline in output between October and December is likely to sharpen the debate over more QE.
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 Watch the Supermoon live: How to see the brightest Moon of the year tonight
- 5 iPhone 5c to be discontinued, no iPhone 6c to replace it
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Stock up on canned food for stock market crash, warns former Gordon Brown adviser
Labour leadership: Jeremy Corbyn voters most likely to believe 'world is controlled by a secretive elite'
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...