X

Create an account to continue reading.

Registered readers have access to our blogs and a limited number of magazine articles
For unlimited access to The Spectator, subscribe below

Registered readers have access to our blogs and a limited number of magazine articles

Sign in to continue

Already have an account?

What's my subscriber number?

Subscribe now from £1 a week

Online

Unlimited access to The Spectator including the full archive from 1828

Print

Weekly delivery of the magazine

App

Phone & tablet edition of the magazine

Spectator Club

Subscriber-only offers, events and discounts
 
View subscription offers

Already a subscriber?

or

Subscribe now for unlimited access

ALL FROM JUST £1 A WEEK

View subscription offers

Thank you for creating your account – To update your details click here to manage your account

Thank you for creating your account – To update your details click here to manage your account

Thank you for creating an account – Your subscriber number was not recognised though. To link your subscription visit the My Account page

Thank you for creating your account – To update your details click here to manage your account

X

Login

Don't have an account? Sign up
X

Subscription expired

Your subscription has expired. Please go to My Account to renew it or view subscription offers.

X

Forgot Password

Please check your email

If the email address you entered is associated with a web account on our system, you will receive an email from us with instructions for resetting your password.

If you don't receive this email, please check your junk mail folder.

X

It's time to subscribe.

You've read all your free Spectator magazine articles for this month.

Subscribe now for unlimited access – from just £1 a week

You've read all your free Spectator magazine articles for this month.

Subscribe now for unlimited access

Online

Unlimited access to The Spectator including the full archive from 1828

Print

Weekly delivery of the magazine

App

Phone & tablet edition of the magazine

Spectator Club

Subscriber-only offers, events and discounts
X

Sign up

What's my subscriber number? Already have an account?

Thank you for creating your account – To update your details click here to manage your account

Thank you for creating your account – To update your details click here to manage your account

Thank you for creating an account – Your subscriber number was not recognised though. To link your subscription visit the My Account page

Thank you for creating your account – To update your details click here to manage your account

X

Your subscriber number is the 8 digit number printed above your name on the address sheet sent with your magazine each week. If you receive it, you’ll also find your subscriber number at the top of our weekly highlights email.

Entering your subscriber number will enable full access to all magazine articles on the site.

If you cannot find your subscriber number then please contact us on customerhelp@subscriptions.spectator.co.uk or call 0330 333 0050. If you’ve only just subscribed, you may not yet have been issued with a subscriber number. In this case you can use the temporary web ID number, included in your email order confirmation.

You can create an account in the meantime and link your subscription at a later time. Simply visit the My Account page, enter your subscriber number in the relevant field and click 'submit changes'.

If you have any difficulties creating an account or logging in please take a look at our FAQs page.

Coffee House

Mark Carney strikes a different tone on Brexit

11 January 2017

5:17 PM

11 January 2017

5:17 PM

Mark Carney made himself some enemies during the referendum. It wasn’t only his gloomy prophecies that caused trouble. His willingness to speak out in the first place was enough to anger those who thought he should keep shtum on a politically-loaded topic like Brexit. Today, though, we saw a different Carney. Gone was the gloominess, and in place of his warning that the referendum was ‘the most significant’ risk to Britain’s financial stability, came the verdict that Britain was largely out of that particular storm. He told the Treasury select committee that:

‘Having got through the night, if you will, and the day after, the scale of the immediate risks around Brexit have gone down, for the UK’

Carney went on to clarify that the biggest risks to the UK economy are now global, rather than Brexit-related – marking a departure from his remarks last year that risks ‘around the referendum’ were the most dangerous. If the Bank of England governor’s tone was different, he was steadfast over his role in helping Britain weather the referendum rain. As during his select committee appearance in September, he told his old nemesis Jacob Rees-Mogg that the steps taken by the BoE – slashing interest rates to a new low, and stepping up quantitive easing, to name two – helped ensure the process so far had been smooth. And he also stuck to his guns by saying that his ‘risk analysis around Brexit’ was right. There was no chance of Carney following in the Bank of England’s chief economist’s footsteps and accepting that forecasts may have been over boiled.


But for all this (relatively) good news, Carney was clear that there are still some risks ahead – for Europe, more so than for the UK. He said that:

‘There are greater financial risks on the continent in the short term for the transition than there are for the UK’

Carney is obviously not saying Britain won’t be hit by any turbulence on the way out of the EU. But in giving his verdict that the risks are greater in other European countries, the inevitable conclusion is that an orderly transition looks sensible for all parties involved, EU leaders included. Carney made the point that the ‘plumbing and wiring’ of many financial institutions from across Europe passes through, or ends up, in London (as the New Financial think tank has pointed out, more than three quarters of all capital market business in EU countries is conducted out of Britain). From this point, it’s possible to get a glimpse as to why a deal with the EU is a likely prospect. After all, it’s in Europe’s interest as much as it is ours.

So what should that agreement look like? Carney was wise not to stray into the miry territory of giving a verdict on whether Britain should stay put in the single market. Yet it was clear that Carney thinks a transition agreement with Europe is the best way ahead for now. He didn’t say so in so few words, but his view that such a temporary agreement was ‘welcome, highly advisable’ and the ‘best mitigant’ to the risks facing Britain made it plain enough to see.

Subscribe to The Spectator today for a quality of argument not found in any other publication. Get more Spectator for less – just £12 for 12 issues.


Show comments
Close