BOE's Carney May Announce Decision To Step Down This Week

Tyler Durden's picture

In November 2012, the central bank-watching world was rocked when instead of Paul Tucker, a three decade veteran at the Bank of England replacing outgoing governor Mervyn King as many expected, the new head of the central bank was revealed to be former Goldmanite Mark Carney, something we had anticipated previously despite realizing that the optics of Goldman dominating European politics and finance, left quite a bit to be desired.

 

However, four years later, in the aftermath of the Brexit revolution that has swept from power virtually everyone that was part of the political group that onboarded Carney in 2012, Carney may be calling it a day. According to several British newspaper, such as The Times and Mail Online, Mark Carney’s "self-imposed deadline" for declaring whether he will stay in office beyond 2018 is fast approaching, and the central banker may decide to step down as soon as next week.

Cited by Bloomberg, the 51-year old Canadian may announce his decision "within days" at his next scheduled public appearance on Thursday, when the BOE announces its policy decision and the governor holds a press conference in London. The BOE did not have an official statement, and instead referred to a previous statement that Carney would make his decision public by the end of this year.

During his testimony at the House of Lords this week, Carney hinted that he may soon depart the top BOE post: "I don’t want to bind … (pause) … the Bank of England two years’ hence."

As for next steps, he may return to his native Canada for family reasons, the newspapers reported.  

"Like everyone, I have personal circumstances which I have to manage," Carney said during the testimony. "This is a role that requires total attention, devotion and I intend to give it for as long as I can."

The BOE governor has been criticized for his negative outlook on the consequences of Brexit. PM May, former Foreign Secretary William Hague and former Justice Secretary Michael Gove have made comments in recent weeks that undermine the central bank’s independence - at least according to Bloomberg - impacting the local currency and recently pushing sterling to multi-decade lows.

Ironically, even though the BOE held an emergency televised press conference a day after the
Brexit vote, pledging an extra 250 billion pounds of
support for the financial system, since then, various economic
indicators have shown the U.K. economy remains resilient, with UK GDP printing a much better than expected 0.5% for the third quarter. Carney’s
critics have accused him of trying to reverse the referendum’s decision
through gloomy economic predictions.

Here is Tory politician Rees-Mogg suggesting earlier this month that Carney isn’t fit for office: "On every occasion he wants to talk down the economy and find doom and gloom, which doesn’t seem to me to be the job of the governor of the Bank of England. He never seems to want to recognize the result of the referendum and get on with it. It looks like he is a sore loser."

To be sure, it may be just a case of delayed manifestations. As the following Bloomberg chart reveals, according to official forecasts (which these days are best known for being wrong), the UK is facing a dramatic risk of stagflation in the coming years.

Somewhat ironically, as Bloomberg's Mark Gilbert writes, "assaults on [Carney's] independence are contributing to the pound’s persistent weakness and the accompanying rise in U.K. government bond yields. Asked what would happen if central-bank independence was subverted, Carney said “if it were to be called into question, one would expect to see a risk premium for U.K. assets.” And asked subsequently if he’s seeing anxiety in financial markets, he said “markets have taken note of the comments.”

The irony, of course, is that "persistent weakness" in one's currency is precisely what central bankers have been trying to achieve throughout the current period of extraordinary monetary policy, as such recent events involving Carney may be perceived as an unmitigated success.

Carney's depsture is not set in stone: As Bloomberg News' Svenja O’Donnell reported on Wednesday, the prime minister’s office sought to reassure Carney that her criticism of the “bad side effects” of monetary policy in a speech earlier this month was clumsy, and that she wants him to remain.

Although it may be too late. As Gilbert concludes:

When Carney took over at the Bank of England in 2013, Avery Shenfeld, the chief economist of Canadian Imperial Bank of Commerce, described him to me as the Ringo Starr of central banking: “He may not be the best drummer in the world, but he’s joining the best band.” Back then, the economy was humming at a sufficient pace for Carney to warn in June 2014 that interest rates might have to rise.

Of course, that whole "rate hike" fear did not last too long, and now that things have gone south may be the perfect time for Carney to move on: just as every aspect of the (un)conventional central banker toolkit has been confirmed to be a failure, and a thoroughly new approach to monetary policy is needed.

Who knows, perhaps the BOE - with little to lose - will be the first modern central bank to retain an "Austrian" governor, although we won't be holding our breath.

As for Carney, should he indeed announce his depart this week with the UK in far worse shape than how he found it, we are confident Goldman Sachs will be happy to open one extra executive chairman position just for him on very short notice.

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AtATrESICI's picture

Run mother fucker, run.

HowdyDoody's picture

He is going home to watch the sun rise in the west with his family.

 

Pinto Currency's picture

 

Trump win and then they'll drop the financial bond market bomb on Trump.

Carney is historical - but his biggest problem is the BoE's pet LBMA gold market is blowing up and Trump and citizens are likely to go after the gold market manipulators (retired or not).

Carney to join Hillary in Qatar?:

http://www.safehaven.com/article/41906/detonation-of-the-lbma-it-wasnt-brexit-governor-carney

http://www.safehaven.com/article/42798/the-rape-of-america-the-core-federal-election-issue

 

philipat's picture

Good. Carney was just as much, and as Head of the "independent" BOE more egregiously so, a part of the anti-Brexit scare campaign as Cameron, who at least did the decent thing and resigned immediately.

Luc X. Ifer's picture

Agree. I think the hidden, real pools show HTC is done so the wet dreams of the globalist neo fascist aristocracy are at least badly damaged for the moment so it is time to retreat to safer places, like Canada 'cause big shitstorm is comming on the pipe.

Christopher Kringle's picture

To the bunkers before the bombing starts.

All is chosen's picture

Mission accomplished. 

karma for Squiddies is delayed again

Old and Angry's picture

He'll come back to Canada and take charge of the Progressive Conservatives.

Sandmann's picture

He's a Liberal in the pocket of Paul Desmerais

Sandmann's picture

He's a Liberal in the pocket of Paul Desmerais

johnnycanuck's picture

Desmerais and Co. play all sides of the fence.  Even gave Sarkozy refuge at their estate for several weeks when charges were brought against him in France.

MASTER OF UNIVERSE's picture

Now that Fat Tony will likely not run you are likely right about that finger sucking child Carney coming back to lead the Conservative Gubbermint Neocons further down the shitter into the sewer with the slimey rats where they belong. Carney is a joke and so are the neocon Conservatives and their fascist party. Moreover, another possibility is that Trudeau wants him in cabinet to make the Conservative party look leaderless and powerless to stop him on the next go round which will never happen because the entire world will blow up by that time.

Roving reporter's picture

Wonder what hole he'll crawl into. #scoundrel

BadKiTTy's picture

He can go back to the uber housing bubble he helped fuel on his watch. 

 

Good riddence! 

 

 

Sages wife's picture

Only if he hurries. The Canadian Mortgage and Housing Commission reported last week that they are raising a 'Red Warning' for housing overvaluation across the country. Vancouver, Toronto, Calgary, and Quebec City lead the way with the other 11 major centers on their heels. All that and the highest household debt levels in the 'civilized' world; or at least the G20. More HELOC anyone?

BadKiTTy's picture

True dat! 

 

They must have legalised drugs in Canada - the only explanation for the insanity there (well.... that and the Chinese!) 

larz's picture

Thanks for your service what's next a regulatory fuck job or back to Goldman Sucks or maybe a consultant that's always a good way to collect and don't forget the ivory tower for you Jeenyusses with a capital j

hsun85's picture

Cable flash spike to 1.30?

Sandmann's picture

Be good to be rid of Osborne's disaster and get a proper banker in position - maybe Tucker can come back ?

Joyo Bliss's picture

You'd think he'd like rollercoaster rides, being a Carney and all

Dark Daze's picture
Dark Daze (not verified) Oct 29, 2016 2:29 PM

I used to think Carney was a pretty descent person, until I learned he was GS alumni. Since he has been at the BOE, the pound has dropped 30% against CAD and more against US$, so I fail to see what he has done right.

Maybe GS will have a place for him, if they survive the next crisis,lol.

 

THE DORK OF CORK's picture

Gdp increases ( a rise in prices)  does not mean a growing economy.

The energy situation suggests something quite different.

Anyhow people do not necessarily need a growing economy.

They do need to balance prices with income.

Everything the bankers do from migration policy to bank credit expansion is a warlike resistance against sociological and economic equilibrium. 

Joyo Bliss's picture

Good one - good tune too

Chuck DeBongo's picture

This doesn't bode well. Something is going to kick off. Mr Carney, if he does step down, is not doing that because everything is rosy. He's jumping ship before the ship hits the icberg. That way his legacy can be look vaguely credible.

 

If it all kicks off in the UK, I'll try to provide you lot with the best information I can....

Kaiser Sousa's picture

Fuck you Londone & New Dork!

BOOM...

"SGE, world largest physical bullion exchange, says in other talks about similar cooperation

Shanghai Gold Exchange and Dubai Gold and Commodities Exchange signed an agreement on Friday in Shanghai which makes the DGCX the first foreign exchange to use the SGE's renminbi-denominated gold benchmark.The SGE is in talks with other exchanges about similar cooperation, according to an SGE circular.SGE is the world's largest physical bullion exchange. The renminbi-denominated gold benchmark, also known as Shanghai Gold was launched in April this year. It is one of China's efforts to earn more say over pricing of the precious metal and increase its influence in the global gold market."

http://www.chinadaily.com.cn/business/2016-10/29/content_27212093.htm

DEATH TO THE MONEYCHANGERS.

THE DORK OF CORK's picture

I happen to think Britain is collapsing. 

London was the very fulcrum of the euro scarcity engine.

We do not have a population problem in Europe.

We have a population distribution problem.

It's just that usury forced people to live in the wrong places,  places with money but with little to no real physical resources.

The UK is the original seat of Manchester style economics.

It's the Satanic mill but today without a power source.

https://en.m.wikipedia.org/wiki/Manchester_Liberalism

A dead belief system.o

Nobody seems to know it yet but it's dead Jim.

https://m.youtube.com/watch?v=9miGpVFNqGY

Albert knows it's dead but has no comprehension of the structure he lives in.

He must forever ponder.

 

GreatUncle's picture

Agree on the collapse, just slowly.

They havign nothing left to shore it up the government sold out the population on everything.

TheVoicesInYourHead's picture

Chinadastan should seize his passport, revoke his citizenship, and immediately deport him as punishment for him creating their massive housing/credit bubbles, which will soon lead Chinadastan to an economic collapse eh.

Joebloinvestor's picture

The UK abandoned manufacturing anything of substance, then pivoted to manufacturing financial shenanigans.

Some financial hub!

 

Sandmann's picture

Manufacturing creates lower GDP for obvious reasons when physical goods make the numbers rather than speculation - one reason Russia's calculation of GDP creates lower numbers than Uk or Germany - without a global banking sector GDP numbers "look" lower.

Nice statistic that Automotive is 1% UK GDP but 12% Exports

ANestIOS's picture

my comment from http://www.zerohedge.com/news/2016-09-23/former-goldman-chief-economist-...

<i really like how he done up threadneedle str, modern like, a bit of a kindergarden aesthetic -very in tune with throwing his toys out the pram - that was still ok but throwing away the "brexit 250billion gbp warchest" to prop up the ftse not very acceptable, if at all>

in the end not acceptable at all

GreatUncle's picture

The BOE since 2008 has thrown hundreds of billions atshoring up a system that was not able to support itself.

Odious debt transferred onto the people to protect TBTF.

JohnGaltUk's picture

I couldnt believe the comments he made during the BRXIT vote. He needs his arse kicked to the curb the little slime ball

amanfromMars's picture

Mark Carney has been as good for the system as David Cameron has been. Two very grey suits losing the plot at every turn. They both have led nothing nowhere extremely successfully. Tweedledum and Tweedledee springs to mind.

Joyo Bliss's picture

Swanning around each having their black crow events? :)

venturen's picture

Let me guess a board seat at a HedgeFund....wholely owned by Goldman and 50 Million GBP/yr think tank director....wholely owned by Goldman!

Sandmann's picture

He will join The Trudeau Foundation or his wife will

robertocarlos's picture

Pieces of shit can't step down. They get flushed.

oneno's picture

Canada has no need for criminals.

When he became head of the Bank of Canada, he publically admited inflation targeting of 2% saying savings would be cut in half in less than 50 years.

TheSecondLaw's picture

"perhaps the BOE - with little to lose - will be the first modern central bank to retain an "Austrian" governor, although we won't be holding our breath."

An Austrian central banker is a contradiction in terms. Austrian economics is for free markets.

JailBanksters's picture

When the Rats start jumping off the Titanic,

you know somethings bad going to happen.

 

 

NobodyNowhere's picture

Another chosenite.

Theremustbeanotherway's picture

Run rabbit run run......... Something tells me that SHF is close and someone wants to jump ship to protect his career.

smacker's picture

"[...] instead of Paul Tucker, a three decade veteran at the Bank of England replacing outgoing governor Mervyn King as many expected [...]"

As I recall, the reason why Tucker didn't get the top job at the BoE is that he was allegedly directly implicated in the LIBOR scandal, perhaps even responsible for orchestrating it. Although Merv King himself was almost cetainly involved in it or aware of it, somebody had to pay the price: Tucker.

This explains why Osborne looked outside the BoE for a King replacement.

adonisdemilo's picture

Mark Carney was employed by the Bank of England whilst still working at the behest of his conies at GoldenSacks.

Everything he said and did was prompted by his PTB controllers.

Good riddance

mary mary's picture

"Meet the new boss; same as the old boss."