Britain still a 'crisis economy', says incoming Bank of England Governor
19th April 2013 | News
The United Kingdom has been described as a ‘crisis economy’ by incoming Bank of England Governor, Mark Carney, with the aim of playing down hopes that he could provide instant relief to the country’s financial state.
Speaking as part of the International Monetary Fund’s (IMF) spring meetings in Washington, US, he said: "The US is breaking out of the pack of crisis economies that include the Eurozone, the UK and Japan."
This statement is only a matter of days after the IMF cut its forecasts for UK growth in 2013 and 2014, urging the Chancellor to trim his £130bn austerity programme in a bid to encourage economic recovery.
Mr Carney stressed that government should not simply look to central banks to return a nation to prosperity:
"Can central banks provide sustainable growth? No. They can help with the transition, but they can’t deliver long term growth," he said.
"That needs to come through true fiscal adjustments and necessary structural reforms ... Sustainable growth comes from the private sector."
Chancellor, George Osborne may be counting on Carney to be more radical in his approach to future policy movements. A separate Treasury Select Committee report on Carney’s appointment revealed that his commitment to end Sir Mervyn King’s allegedly autocratic management style is a step in the right direction.
However, in a separate Reuters Newsmaker event in Washington, Carney went to great lengths to stress that his influence regarding policy at the Bank of England might be overstated.
"It’s an honour and responsibility [to be Governor] but it’s a responsibility that can be overplayed as these powers are vested in committees," he said.
"I’m a member of these committees. Policy is not mine."