Mark Carney

  1. Carney: Bank ready to take 'all necessary steps'

    Faisal Islam

    BBC Economics Editor

    Bank of England governor Mark Carney has warned of the coronavirus causing an economic shock “which could prove large, but which will ultimately be temporary”.

    Speaking to the House of Commons Treasury Select Committee, the governor said that the Bank would “take all necessary steps” consistent with its mandate to support the economy, households and businesses.

    The analysis that a shock would be “temporary” suggests the Bank is willing to act decisively to create a financial “bridge”.

    He also said the fact that in the near term this was likely to be more of a demand issue than a supply issue is a “consideration for the stance of monetary policy” - a hint that the Bank of England is considering rate cuts to boost confidence.

    Australia’s central bank cut interest rates earlier this morning, on economic fears arising from coronavirus. G7 finance ministers will hold a conference call at noon, and the BBC understands a statement acknowledging the economic impact of coronavirus and the willingness to work together is likely to be released.

    President Trump has renewed his social media pressure on the US Federal Reserve to cut interest rates because of the coronavirus.

  2. Carney: Economic effects of coronavirus 'could prove large'

    Mark Carney

    Mark Carney starts a Commons Treasury Committee hearing with a statement about coronavirus.

    He paid tribute to the NHS and the Foreign Office "on the frontline". He also warned that the effect on the UK economy "could prove large", but ultimately it will be temporary.

    The Bank of England will be monitoring any supply disruptions, the effects on cashflow, and the effects on economic confidence.

    It will also be looking at the contingency plans of banks, insurers and financial institutions.

    And the bank will also be reviewing its own systems so "sterling operations remain resilient"

    "We will act as appropriate," he added.

  3. Coronavirus could hit UK economy, warns Mark Carney

    Mark Carney

    Mark Carney has warned that coronavirus could hit the UK economy in the next few months in an interview with Sky News before he steps down as Bank of England governor next month.

    He suggested that the outbreak could lead to a downgrade of the UK's economic growth prospects.

    Mr Carney said: "What we are picking up with some of our bigger companies and companies around the world is that supply chains... are getting a little tight. That's lower activity.

    "There's less tourism - as you can see on our streets here in the UK. That's lower activity as well."

    He told Sky News on Friday: "We would expect world growth would be lower than it otherwise would be, and that has a knock-on effect on the UK."

  4. So, farewell then Mark 'Carnage' Carney

    Mark Carney, Bank of England governor

    It’s Mark Carney’s last interest rate meeting. The governor - who was known as "Carnage" in his younger days - says that when he joined the Bank, the UK economic recovery was just beginning.

    "The UK economy could afford to grow at a faster rate before inflationary pressures started to build. That means the need for interest rate rises was less immediate.

    In today’s world, the economy can’t grow as much as it used to because the UK is not as productive as it used to be. This means growth ahead is likely to be slower than it used to be before the financial crisis," said Mr Carney.

    Speaking to reporters Mr Carney says of his time as the Bank of England governor he has no regrets.

    He also added, "post-Brexit, it's important that the financial sector finds a compromise that doesn't involve simply cutting and pasting the rules".

  5. Interest rates: One and done?

    Szu Ping Chan

    Business Reporter, BBC News

    a chart showing how low interest rates have fallen after 10 years

    Is Mark Carney suggesting that if there are interest rate rises, there may be only one?

    In the Bank’s latest interest rate decision, it removed the words “limited and gradual” with respect to the future path of interest rate rises. Mr Carney says “limited and gradual” suggests several rate rises. Those words have been replaced by “some modest tightening of policy”.

  6. Economies are getting stronger, says Carney

    Szu Ping Chan

    Business Reporter, BBC News

    Mark Carney

    The Bank of England press conference has begun and outgoing governor, Mark Carney, says the last decade ended “with a whimper” with a marked slowdown in global growth led by a manufacturing recession.

    UK growth last year was its weakest since 2010 and business investment remains subdued.

    So will the next decade start with a bang? Mr Carney says global growth has now stabilised.

    An easing of trade tensions has played a part. So have central banks, with the European Central Bank and Federal Reserve opting to cut rates last year.

    Manufacturing activity is on the up he says, and there are signs from around the world that economies are getting stronger.

  7. Pound rises on rate hold

    The Bank of England's new governor Andrew Bailey
    Image caption: The Bank of England's new governor Andrew Bailey will have to 'land on his feet running'

    The pound has risen 0.35% against the dollar to $1.3067 after the Bank of England's Monetary Policy Committee voted to hold the interest rate.

    Sterling also gained against the euro, up 0.21% at €1.1849.

    The MPC made clear, however, that it may act if the UK economy fails to gain momentum.

    "With Mark Carney seemingly having deferred this policy decision to his successor, Andrew Bailey will need to land on his feet running," says Principal Global Investors' market strategist, Seema Shah.

    "Unless economic activity data improves measurably over the coming months, reflecting proof of the so-called 'Boris bounce', and interest rate cut is likely to remain on the agenda for 2020.".

  8. Good morning!

    Welcome to Business Live.

    The Bank of England will announce at midday whether it will hold or cut the interest rate from its current 0.75%. It will also be the final rate announcement led by governor Mark Carney before he steps down.

    After the government said it will renationalise Northern rail, it is now set to give the green light to HS2 - Chancellor Sajid Javid has thrown his backing behind the controversial project.

    The number of people infected by the coronavirus is continuing to rise and with that, so are the concerns about what impact it will have on the global economy.

    On the results calendar is consumer goods giant Unilever, oil major Shell, telecoms group BT, drinks firm Diageo and estate agency Foxtons.

    Over in the US, expect financials from online retail giant Amazon, Coca-Cola and Levi's.

    As always, we'd love to hear from you. Email Business Live at

  9. Sterling tumbles on Carney comments

    Notes and coins

    Sterling has fallen to its lowest level against the dollar for nearly two weeks.

    The drop follows comments by Bank of England governor Mark Carney who said that there could be a “relatively prompt response” if it looked like weakness in the economy would persist.

    This hint that interest rates could be cut to stimulate the economy prompted sterling to fall by 0.5% to $1.3028, its lowest level since 27 December.

    The pound also fell by 0.5% against the euro, to 1.1735.

    The betting on the markets is there's about a 60% chance of a 0.25% cut in interest rates by December.

    Mr Carney also referred to the potential to increase quantitative easing - the bank pumping more money into the economy by buying government bonds - in order to stimulate the economy.

    He said there was room to "at least double" the bank's £60bn stimulus package of August 2016.

  10. Video content

    Video caption: Bank of England chief issues climate change warning

    Mark Carney said the financial sector had begun to curb investment in fossil fuels. but slowly.