Canadian Mark Carney vows to save British Economy







If Mark Carney had prayed for a quiet first day at work, well his prayers were not successful because every place he went this morning was full of photographers. This former Canadian central banker who is the first foreign governor in the bank’s history takes reigns at the Bank of England and according to the Britain’s Finance Minister, the new Bank of England Governor is the outstanding banker of his generation.

“The man has got that Charisma,” senior market strategist for Killik &Co, Paul Kavanagh said.” People are going to warm to him.”

Carney will move into the headquarters of the bank in London city on July 1.Since the onset of the 2008 economic crisis, the Britain’s economy has been foundering and Carney will have a tough job in rescuing it. He will have the best possible assistance and it’s the hope of the British leaders that he will come up with new ideas and inject confidence to revive the fortune of the country.

Unlike the former governor of the Bank of England, the 65 year old Mervyn King who had to maneuver the bank through the 2008 economic crisis Carney who is 48 hopes to have a calmer time. King who worked for 10 years had to help in rescuing a number of major retail banks and lowered interest rates to an all time low of 0.5% and introduced a 375 billion pound ($572) bond buying program all in the attempt of reviving the UK’s economy.

The new governor’s track record is quite impressive. Carney has earned himself credit for keeping money flowing through the economy of the Canada. He is very quick in taking actions by cutting interest rates to their lowest levels ever of 1%. He worked with the bankers of Canada to sustain lending through the crisis. He critically notified the public of the low rates so they would keep borrowing. Besides all these he had good policies and sold them to the public in a way that they were understood by everyone.

The situation in Canada was not as challenging as in Britain because Canadian banks didn't dabble in sub-prime mortgages because they were stronger. None of the banks required a bailout. Demand for energy and mineral exports in Canada played a big role in helping the country rebound quickly than many industrial nations in Western Europe and the United States.

As compared to King who is quiet and comes from the gray serious world of central banking, the new guy from Ottawa is getting all the glories. “If you had the picture of central bankers as boring old people, Carney was not.” said the deputy chief economist at CIBC World Marketers in Canada, Benjamin Tal. “He looks differently and has all his hair. His way of speaking is not typical.”

Unlike most central bankers, Carney is known for his wit and informed clarity and this is a golden attribute to the financial sector of UK where scandals related to interest rate rigging, rogue trading and lack of accountability has undermined the public confidence of the financial sector of the country.

“We need an honest and open person and if the public is going to change their opinion, we need honest appraisals of what is going on.” said  Lancaster University Management School professor, Carry Cooper

British are advantaged to have Carney’s newness because he can play the outsider. This is where a new face comes in to offer a fresh approach thus replicating a common trait in business.


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