BoE Governor Mark Carney Warns Theresa May Not To Instruct About His Job

Bank of England (BoE) governor Mark Carney warned British Prime Minister Theresa May not to tell him how to do his job as he would not take instruction from politicians on how Monetary Policy Committee determines interest rates.

Earlier, during a party conference speech the PM criticized the independent central bank’s policies claiming BoE’s low interest rate policy got side effects on the young, the savers and pensioners as well.

Carney said at a public meeting in Birmingham even though the overall objectives are set by politicians, the decisions of the process of achieving those are of the bank.

He added, “Politicians have done a very good job of setting up the system. Where it can be difficult sometimes is if there are political comments on our policies as opposed to political comments on our objectives.”

The governor further mentioned objectives are set by politicians, policies are done by technocrats and so they are sorry to take instruction on their policies from the political side.

May in her speech also warned against quantitative easing and further cut on interest rate.

Meanwhile, it is also learned the governor had complained to Chancellor Phillip Hammond about May’s remarks on the bank.

According to Downing Street spokesperson, the quantitative easing and monetary policy as a whole is a matter for independent BoE.

The spokesperson further added the PM is committed to get her government to the service of those who have been deprived or found themselves poorer due to monetary policy of the country.