Mark Carney faces 'mega-challenge' as Bank Governor, says former boss

 

Mark Leftly,Russell Lynch
Sunday 10 February 2013 01:00
Comments

Mark Carney's predecessor as governor of the Bank of Canada has warned that his former protégé faces "a mega-challenge" when he takes over the Bank of England later this year.

Mr Carney, who was grilled by the Treasury Select Committee on his plans and his £800,000 pay-and-perks package, must oversee the integration of banking supervision with the Bank of England's traditional role as the arbiter of monetary policy, such as setting interest rates.

David Dodge, who identified Mr Carney as his successor during a seven-year tenure as Canada's chief central banker to 2008, told The Independent on Sunday: " It's a mega-challenge, to absorb the regulatory side into the Bank of England. You've got to figure out how the Bank of England of 2013 operates against how it operated under Sir Mervyn King and even before that."

Sir Mervyn's final months in charge will also prove difficult. This week, the Bank's efforts to control the cost of living will come under scrutiny as its forecasts show high inflation lingering for far longer than expected.

Its latest inflation report on Wednesday comes a day after official figures are set to show its Consumer Prices Index benchmark stuck stubbornly at 2.7 per cent – the Monetary Policy Committee's target is 2 per cent. The MPC blamed the pound's fall and higher regulated prices, such as utility bills and rail fares.

Capital Economics' chief UK economist, Vicky Redwood, added that sterling's decline is likely to push up import price inflation to around 5 per cent, feeding into spiralling high-street prices next year.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in