Mr Redwood’s contribution to the Statement on the Future Leadership of the Bank of England, 26 Nov

Mr John Redwood (Wokingham) (Con): I welcome the appointment of someone (Mark Carney) who should bring new thinking to troubled banking and monetary policy in the United Kingdom. Will the Chancellor confirm that, when he has studied the subject, Mr Carney will be free to change our monetary and banking policy in ways that could promote a more sustained and favourable economic recovery?

The Chancellor of the Exchequer (Mr George Osborne): I thank my right hon. Friend for his support for the appointment. We have now united all points on the spectrum.

The Governor of the Bank will chair the Financial Policy Committee, the body that will be responsible for macro-prudential regulation. In other words, he will set overall guidance on issues such as capital and liquidity, about which I know my right hon. Friend has spoken powerfully. Any decision on the framework of the inflation-targeting regime and the like will be made by the elected Government and not by the Governor of the Bank.

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4 Comments

  1. Lord Blagger
    Posted November 27, 2012 at 3:19 pm | Permalink

    Prices are 108% of the target.

    Time to stop the pathetic, please please, can we have another go at controlling inflation malarky.

    Time also to stop the insider trading scam at the BoE. They have a remit of controlling inflation. As soon as they had the nod not to do so with the banking mess, they moved their pension fund into inflation linked gilts.

    Nothing like winning from your own failure is there

  2. Nicol Sinclair
    Posted November 28, 2012 at 1:56 pm | Permalink

    JR: “We have now united all points on the spectrum.”

    What the hell does this actually mean – in English? Is the Chancellor looking through a prism? Uniting all points of the spectrum = WHITE and currently he is anything but white – more a dreary shade of black.

  3. VYVYAN BAUER
    Posted November 28, 2012 at 2:19 pm | Permalink

    CANADIANS ARE MILDLY AMUSED BY THE BRIT EXCITEMENT OVER MARK CARNEY”S APPOINTMENT. MR. REDWOOD’S ANALYSIS OF THE CANADIAN ECONOMIC SITUATION IS , AS ALWAYS, CLEAR AND TO THE POINT. ONE SMALL SUGGESTION: WE CALL OUR REGIONS BY THE GRACIOUS NOMENCLATURE OF PROVINCES NOT STATES. THAT TERM IS RESERVED FOR OUR GOOD NEIGHBOURS TO THE SOUTH.

  4. Christopher Ekstrom
    Posted November 30, 2012 at 6:00 am | Permalink

    The “elected government”: barely! Cast Iron & Georgie Porgy will bankrupt the UK yet.

  • About John Redwood


    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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