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.