Experimental feature

Listen to this article

00:00
00:00
Experimental feature
or

Mark Carney has said central bankers’ dominance in post-financial crisis economic policy is coming to an end, noting a shift towards greater fiscal spending with the election of Donald Trump as US president.

Asked about the Trump administration’s latest comments on the currencies markets, and whether they make it harder for central bankers to determine interest rates, Mr Carney said:

We are coming to the last seconds of the central bankers’ 15 minutes of fame, which is a good thing.

I will not quibble about specific comments at specific times.

In his post inflation report press conference, the governor said the world was moving to a more “balanced policy mix” between fiscal and monetary policy, which would help lift UK growth in the first part of 2017, according to BoE forecasts.

This was better than “the only game in town being central banks” he said.

On the Brexit vote, he said it would be “false precision” for the BoE to forecast the outcome of the UK’s EU negotiations.

Most of the economic impact from the negotiations, including business decisions to delay or prolong investment, would all be felt outside the BoE’s current forecast, which extends to 2019.

“The effect on supply particularly is predominated determined by firms’ investment plans in anticipation of those potential [post-Brexit] arrangements”, said Mr Carney.

Copyright The Financial Times Limited 2017. All rights reserved.
myFT

Follow the topics mentioned in this article

Follow the authors of this article

Comments have not been enabled for this article.