Tag: Mark Carney

Mark Carney

FSB Names New Chair

The Financial Stability Board (FSB) has named Randal Quarles, governor and vice chairman for supervision at the US Federal Reserve, as its new chair. In addition the FSB appointed Klaas Knot, president of De Nederlandsche Bank as vice chair. Both men have been appointed for a three-year term starting on 2 December 2018.
The FSB’s Plenary, which made the appointment, also agreed that after three years on 2 December 2021 Knot will take over as chair for the next three-year term.
Plenary members unanimously welcomed these appointments, FSB says, which were made at the recommendation of a specially constituted Nominations Committee.

Carney to Stay On at BoE Until 2020

Mark Carney, Governor of the Bank of England, has agreed to extend his term to January 2020.

In a letter to Carney published today, Philip Hammond, the UK Chancellor of the Exchequer, said: “Further to our discussions and those that I have had with the Prime Minister, I am writing to ask whether you would be able to extend your term as Governor of the Bank of England to January 2020 to support a smooth exit of the United Kingdom from the European Union and an effective transition to the next Governor.”  

In his reply, the Governor said: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit.

FSB: Cryptoassets Not a Risk to Financial Stability

In a new report to the G20, the Financial Stability Board (FSB) has concluded that “cryptoassets do not pose a material risk to global financial stability at this time”.

While this is a welcome boost for the crypto industry, the FSB does make clear that these assets should be vigilantly monitored by authorities going forward.

As such, the FSB has requested that the Standing Committee on Assessment of Vulnerabilities (SCAV) and the Committee on Payments and Market Infrastructures (CPMI) work jointly to develop a framework for monitoring the financial stability risks related to cryptoassets with a focus on identifying potential metrics that can be used to measure these risks.

Carney Expresses Optimism Over FICC Misconduct Measures

In a speech delivered today to the FICC Markets Standards Board (FMSB) in London, Mark Carney, Governor of the Bank of England (BoE), expressed optimism that new measures aimed at preventing misconduct in the FICC markets are having a significant impact. 

These measures, set out two-and-a-half years ago in the Fair and Effective Markets Review (FEMR), are designed to improve confidence in FICC markets after a series of scandals. 

“Multiple factors contributed to a tide of ethical drift in FICC markets. Market standards were poorly understood, often ignored and always lacked teeth. Too many participants neither felt responsible for the system nor recognised the full impact of their actions. Bad behaviour went unchecked, proliferated and eventually became the norm,” noted Carney in his speech.

Carney Speech Prompts Sterling Slide

The value of sterling slid today as Bank of England (BoE) Governor, Mark Carney, indicated that there would be no immediate adjustment of monetary policy by the central bank.

In a speech delivered at Mansion House in London, Carney declared that “now is not yet the time to begin” monetary adjustment, ruling out the possibility of an interest rate hike.

GBP/USD promptly dropped from 1.2753 at 8am BST to 1.2631 just before 3pm BST in response to Carney’s comments. “Since the prospect of Brexit emerged, financial markets, notably sterling, have marked down the UK’s economic prospects.

“Confluence of Factors” Behind Sterling Flash Crash: BIS

The Bank for International Settlements’ (BIS) Markets Committee has released its analysis of the 7 October 2016 “flash event”, arguing that a range of factors rather than a single driver catalysed the event.
During the flash event, sterling depreciated by around 9% versus the dollar in early Asian trading, before quickly retracing much of the move.
The new report concludes that “a confluence of factors” cause this flash event, noting that “the time of day played a significant role in increasing the sterling foreign exchange market’s vulnerability to imbalances in order flow”.

Analysts Predict Further Rate Cuts After BoE Stimulus

Expect further rate cuts from the Bank of England (BoE) as Governor Mark Carney shows that he is willing to let sterling continue depreciating, say analysts. “The package of stimulus announced by the Bank of England has prompted a significant market reaction,” notes Adam Chester, head of economics at Lloyds Commercial Banking. He adds: “Immediately […]

BoE Expects Monetary Policy Easing in Summer: Carney

The Bank of England (BoE) is expecting that some “monetary policy easing will likely be required over the summer” as the “economic outlook has deteriorated” on the back of the UK voting to leave the EU, the BoE governor Mark Carney said in a speech today at the Bank. In addition, “in order to support […]