Mark carney

The currency has been devalued by more than 30 per cent. Interest rates have been pushed all the way up to 20 per cent. The IMF is standing by with an emergency package, and capital controls and dollar rationing have been maintained. It has been a heck of a morning for the pound – although, fortunately enough for most us, the Egyptian rather than British one. Over here, it has all been rather quieter. The Bank of England, as most people expected, has stuck with its decision over the summer to take rates all the way down to the 0.25 per cent. It now looks inevitable that it will hold them there – potentially for as long as the seven years at which they were left at 0.5 per cent. And yet that is surely a mistake.

Mark Carney’s decision to stay on as Bank of England Governor until 2019 has been widely welcomed. But not everyone is happy about the news. The Daily Mail accuses Carney of being a ‘posturing governor’ and says the staging of his announcement yesterday was in line with much of his conduct: ‘designed to generate maximum publicity’. The paper says that while some were concerned at the possibility of uncertainty in the markets if he'd walked away, would it be any worse than ‘his relentless doom-mongering’?

Oh dear. Mark Carney is irritated. His proud independence has been challenged. The Prime Minister had the temerity to admit that she was not altogether thrilled with his ‘super-low’ interest rates and quantitative easing. These policies meant that people with assets got richer, she pointed out. ‘People without them suffered… People with savings have found themselves poorer.’ Mr Carney found this intolerable and haughtily rebuffed her, saying, ‘The policies are done by technocrats. We are not going to take instruction on our policies from the political side.’ Back in your box, Mrs May. Carney’s in charge!

It takes quite a determined Cassandra to see the rise in Consumer Prices Index (CPI) from 0.6 per cent in August to one per cent in September as some kind of crisis, not that that will stop the holdouts of the Remain campaign from trying to do so. When CPI fell below one per cent at the end of 2014, you might remember, there were dark warnings about the threat of deflation – with the horrors that would imply for borrowers, who would see the real value of their debts increase. Now, some are trying to present a rise to one per cent as bad news, with former Monetary Policy Committee member Andrew Sentance, for example, calling it the ‘tip of an inflationary iceberg’. Steady on. Sure, inflation is likely to increase over the next few months.

If only all my stories had as much impact. My interview with Mark Carney, the Governor of the Bank of England, sent shockwaves around the world’s currency markets. The Canadian was just three months into his new role as Britain’s most powerful unelected official when he visited Leeds to explain the central bank’s then new policy of forward guidance to a group of business leaders at the offices of one of the city’s Big Six law firms. In person, Carney was smooth, confident and assured, just as you would expect from someone who spent his formative years at Goldman Sachs. I had 10 minutes with the Governor, who was accompanied by his imported Canadian spokesman.

How does Mark Carney feel about his 'Project Fear' warnings in the run-up to the referendum? His mild-mannered nemesis Jacob Rees-Mogg probably wouldn't have been prepared for the Bank of England Governor's choice of words to describe his mood. Carney was 'serene' about how he handled himself before Brexit, he told the Treasury Select Committee this afternoon. But Carney didn't stop there: he also did his best to bait Rees-Mogg, who has clashed with Carney several times before at these hearings, suggesting the session was being wasted 'going through counterfactuals'. He then went on to slap down any suggestion from the Tory MP that his warnings had been 'dire'.

Did you see that odd photo of George Osborne looking shifty, queuing up in the Vietnamese jungle for the chance to fire an M60 machine gun? I found it interesting for a number of reasons. One, obviously, is that it’s probably the first time in five years Osborne hasn’t been pictured wearing a hard hat and goggles. Another is what it tells us about his earnings prospects on the US speaker tour circuit: those guns can fire up to 650 rounds a minute — so at the local tourist rate of £1 a bullet that’s quite an expensive cheap thrill. Mainly, though, what struck me about that snap was just how quickly fortune’s wheel can turn.