new mood music or warning shot
LONDON (Reuters) Was Prime Minister Theresa May sending a warning to Bank of England Governor Mark Carney Canada Goose Online when she highlighted the damaging side effects of his ultra low interest rates?
Britain’s Prime Minister Theresa May gives her speech on the final day of the annual Conservative Party Conference in Birmingham, canada goose replica Britain, October 5, 2016. REUTERS/Toby Melville
May took the unusual step of commenting on central bank policy on Canada Goose Coats On Sale Wednesday when she said near zero canada goose store rates and the BoE huge bond buying programme had hurt savers.
change has got to come and we are going to deliver it, May told her ruling Conservative Party as she spelled out her plans canada goose coats to work for lower earning Britons following the shock canada goose black friday sale Brexit vote in June that helped make her prime minister.
The blunt canada goose words represented a clear change of tone from Downing Street, under its Canada Goose sale new occupant, towards the Bank of England and were among the canada goose outlet toronto factory most Canada Goose online direct from a prime minister since the BoE won operational independence in 1997.
May wants to show she understands the frustrations of many voters who delivered a stinging rebuke to Britain establishment in June by deciding to leave the European Union.
Aides denied she was seeking to influence the BoE policy decisions with her comments. Instead, she was cheap Canada Goose signalling the need to pursue new ways to spread the benefits of growth, canada goose clearance they said.
But Mohamed canada goose coats on sale El Erian, chief economic adviser to Germany Allianz, said officials at the BoE would be by the comments.
remarks are unlikely Canada Goose Parka to have an immediate impact on Bank of England policies, El Erian told Reuters. they are part of a broader warning that is applicable to central bank autonomy around the world. Republican presidential candidate Donald Trump has accused the Federal Reserve of keeping interest rates low because of political pressure from the Obama administration.
In Germany, Chancellor Angel Merkel said in April that it was legitimate for people to question the European Central Bank record low interest rates.
Carney too has faced harsh criticism from some leading supporters of the Leave campaign in June referendum who have accused him of bias.
STILL SERENE? The Canadian has dismissed the criticism and described himself as serene about the way the central bank prepared for the Brexit vote.
He was widely praised for showing investors that Britain economy remained canadian goose jacket in safe hands during the chaotic days that followed the referendum shock in late June.
The BoE will also be a key player as Britain enters politically fraught negotiations with the buy canada goose jacket rest of the EU about how much access it will have to the bloc markets. dollar this week. [GBP/]
The BoE is due to decide in early November whether to follow through on signals it might cut rates again to a fraction above zero.
May comments also come at a sensitive time personally for Carney online website who has said he will decide before the end of this year whether he will leave the BoE in mid Canada Goose Jackets 2018 as originally planned, or take up an option to stay until 2021.
Carney said on Thursday he agreed the spirit of May speech in which she signalled action by the government to foster growth and said the BoE actions had helped the economy through the aftermath of the 2007 09 financial crisis.
Similar to May, he has said governments needed to do more to encourage growth through their budgets and through reforms to make economies 2018 canada goose outlet more competitive after years of reliance on near zero interest rates and bond buying.
Indeed, May finance minister, Chancellor of getcanadagooseoutlet the Exchequer Philip Hammond, has said he buy canada goose jacket cheap is considering how much help Britain economy needs after the Brexit vote. He is due to set out his first budget statement on Nov. 23.
But May comments could make it harder for the BoE to expand its bond buying programme in future, should Britain economy need more help.
Hammond told CNBC television on Thursday that he would take any future decision to approve more quantitative easing and cautiously
Former BoE rate setter Andrew Sentance said he did not think May wanted a full on confrontation with Carney, but canada goose clearance sale Wednesday comments were a sign of a new relationship with the canada goose deals BoE and the government which sets the mandate of the central bank.
have enough challenges right now with Brexit Canada Goose Outlet without May overthrowing the independence of the central bank, Sentance, who is now senior economic adviser to PwC, canada goose outlet store locations said. the mood music around monetary policy is definitely changing.
Additional reporting by Guy Faulconbridge and Jamie McGeever in London and David Chance and Lindsay Dunsmuir in Washington; editing by Ralph Boulton.