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Brexit: Carney warns no-deal could see house prices plunge

Brexit: Carney warns no-deal could see house prices plunge

Business
The Bank of England's governor has warned the cabinet that a chaotic no-deal Brexit could crash house prices and send another financial shock through the economy.Mark Carney met senior ministers on Thursday to discuss the risks of a disorderly exit from the EU.His worst-case scenario was that house prices could fall as much as 35% over three years, a source told the BBC.The warning echoes some of the Bank's previous comments.The Bank of England routinely carries out "stress tests" to check whether the banking system can withstand extreme financial shocks.Its latest one was conducted in November, when it said a 33% fall in house prices could occur in a worst-case scenario. Several reports said that the Bank governor also told the Downing Street meeting tha...
Carney: House prices may fall by a third in 'no-deal' Brexit

Carney: House prices may fall by a third in 'no-deal' Brexit

Business
Bank of England governor Mark Carney has warned ministers that a "no-deal" Brexit could see house prices crash by a third, Sky sources say. Briefing Theresa May and her top team in Downing Street, Mark Carney laid out three different scenarios the Bank believes could come to pass if Britain leaves the EU without a withdrawal agreement.The worst case scenario would see Britain go into recession, a slump in the value of the pound and a crash in house prices.Sky's political editor Faisal Islam said a source characterised the governor's comments as "not a prediction, a worst case scenario", adding Mr Carney's comments were received "respectfully" by those around the cabinet table. ...
Carney may stay at BoE for 'smooth' Brexit

Carney may stay at BoE for 'smooth' Brexit

Business
Bank of England governor Mark Carney has signalled that he is prepared to extend his tenure following talks with the chancellor. Responding to speculation he could serve beyond June 2019, he told MPs on the Treasury select committee: "Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and an effective transition at the Bank of England."Mr Carney said he expected an announcement shortly.A spokeswoman for Theresa May responded by saying the prime minister thinks Mark Carney has "done a good job," adding there would be more to say in due course.Mr Carney, who was appointed in 2013, originally planned to serve just five years of a maximum eight-year term as governor. ...
Carney calls for crackdown on cryptocurrency 'mania'

Carney calls for crackdown on cryptocurrency 'mania'

Business
Cryptocurrencies such as Bitcoin should be regulated to crack down on illegal activities and protect the financial system, Mark Carney has warned.The Bank of England governor said their inherent risks meant investing in cryptos could lose money."The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system," Mr Carney said in a speech on Friday.Cryptocurrencies "do not appear to pose material risks to financial stability".But he said that could change if more people began investing in them.Although some countries have banned them, Mr Carney said regulation would be a better approach."A better path would be to regulate elements of the crypto-asset ecosystem to combat illicit activities, promote market integrity, and protect the safety and sou...
Mark Carney expects interest rate rise in 'relatively near term'

Mark Carney expects interest rate rise in 'relatively near term'

Business
Media playback is unsupported on your deviceInterest rates could rise in the "relatively near term" the Governor of the Bank of England has told the BBC. In the clearest indication yet that there could be a rate rise as early as November, Mark Carney suggested that it was time for the bank to "ease its foot off the accelerator".The next opportunity for a change in interest rates is the Bank's monetary policy committee meeting on 2 November.The governor also warned against "reckless" household borrowing.He said that while overall lending to UK consumers had come down markedly since the financial crisis, there was a danger from rapid "frothy" growth in some areas of household borrowing."What we're worried about is a pocket of risk - a risk in consumer debt, credit card debt, debt for cars, p...