Carney faces hard task at BoE
Mark Carney is the current Governor of the Bank of England and a former Canadian central bank governor.
His arrival this week at the Bank of England was considered as beginning of new era, in which he would try to drive Britain's economy out of the depression.
Carney is the first foreigner to run the 319-year-old central bank and his arrival has coincided with reports signaling the U.K. economy is strengthening, which may reduce the need for more monetary stimulus. Still, with the recovery not yet assured and bond yields rising, the BOE will announce its decisions today , and analysts forecast it will be kept at 375 billion pounds ($573 billion), and to hold the key rate at 0.5 %,
Carney has indicated a preference for further action. So any push by Carney for further stimulus may influence the BOE’s decision-making process..
At recent MPC meetings, six policymakers have voted against more stimulus and only three have voted in favor, including Mervyn King who retired as governor last week.
These are signs of recovery in UK; as Services and manufacturing growth accelerated to their fastest in more than two years in June. A report today from Halifax, the, showed U.K. house prices rose last month to the highest in almost three years.
However, risks remain, including the recession in the euro area and a political crisis in Portugal that has sent the nation’s bond yields to rise.
At the end, there is a question to rise which is ; will Carney be the right man for the job as Mervyn King was?
