Mark Carney

Carney in the running for IMF top job?

Today Programme

BBC Radio 4

Christine Lagarde and Mark Carney
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Christine Lagarde and Mark Carney

Christine Lagarde has now resigned as head of the International Monetary Fund (IMF) - as widely expected.

"The debate's going to be now who is going to replace her at the IMF," says Laura Foll, fund manager at Janus Henderson Investors. "And one of the names being talked about is possibly Mark Carney."

She says: "Traditionally, the IMF has been headed always by a European."

Mr Carney is Canadian but Ms Foll points out that the Bank of England Governor "does have British and Irish passports which sort of puts him forward for the job effectively but he's just one of a long list of people speculating who it could be."

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Where now for interest rates?

Today Programme

BBC Radio 4

Bank of England governor Mark Carney
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Is the UK interest rate set go up or down?

The signs are confusing after two members of the Bank of England's rate-setting Monetary Policy Committee - Michael Saunders and Ben Broadbent - recently appeared to indicate a rise while a speech this week by Governor Mark Carney (pictured) pointed to an opposite move.

Sree Kochugovindan, Barclays's senior UK economist, says: "I think Mark Carney, what he was doing was highlighting some of the risks that we've see in the data, not just in the UK but also with the broader global backdrop as well with the trade tensions."

However, she points out that Mr Carney repeated the view that interest rates will rise "at a gradual pace".

What did Mark Carney say?

Bank of England governor Mark Carney
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Sterling has fallen further this afternoon, after an appearance made by Bank of England chancellor Mark Carney at the Local Government Association Annual Conference in Bournemouth.

Mr Carney told the audience that trade wars and fears over a no-deal Brexit are a key concern for investors.

"Whether current trade tensions shipwreck the global economy or prove to be a tempest in a teacup will have an important influence on the outlook for growth and inflation in the UK," he said.

"However trade tensions evolve and the Brexit process unfolds, UK monetary policy will remain guided by the constancy of the inflation target."

But even if the worst happens, Mr Carny warned that the central bank would not immediately cut rates.

"A no-deal outcome would result in an immediate, material reduction in the supply capacity of the UK economy as well as a negative shock to demand. There is little monetary policy can do to offset the former," he said.

"A major negative supply shock is extremely unusual in advanced economies – the last one was the 1970s oil shock, even if the possibility of the next one is brewing in the Twittersphere."

'The worst kind of uncertainty'

Mark Carney is still presenting before the Treasury Select Committee.

Mr Carney is warning MPs about the dangers of short-term uncertainty on businesses.

The BBC's economic correspondent Andrew Verity tweets:

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Rising interest rates on the horizon

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