Mark Carney has backed the prime minister’s call to rethink Britain’s economic policy and rejected the idea that criticism of the side-effects of unconventional measures amounted to an attack on the independence of the Bank of England.
In his first public comments since Theresa May said there had to be a change to a system that was biased in favour of the asset-rich and mortgage payers, Carney said: “I entirely agree with the spirit of what the prime minister said.
“I have long said that monetary policy has been overburdened. There needs to be a better balance of monetary policy, fiscal policy and structural policy.”
His remarks at the International Monetary Fund in Washington came as the chancellor, Philip Hammond, sought to counter the suggestion that the government was unhappy with Carney’s performance and was thinking of replacing him as governor.
