U.K.'s Hammond: BoE to retain independence

Economy | Politics 10/19/2016, 6:29 PM
U.K.'s Hammond: BoE to retain independence

British chancellor Philip Hammond has insisted that the Bank of England (BoE) would retain full control of the country's monetary policy, after prime minister Theresa May strongly criticized the bank for low interest rates and promised "change" in that regard. The central bank's Monetary Policy Committee, which is in charge of setting interest rates, would retain its independence in determining policy measures, the official added during his speech before the parliament on Wednesday.

Chancellor's comments come after the BoE's governor Mark Carney said last week "it can be difficult sometimes if there are political comments on our policies," referring to May's earlier assertion at the Tory Party conference that "change has got to come." Hammond explained her remarks were related to the distributional effects of low interest rates and easing measures, not the bank's independence. In that sense, her call for change referred to the need to use tools at government's disposal to address such distributional impacts, he added.

TeleTrader Newsroom / IB