NEW GOVERNOR OF THE BANK OF ENGLAND
In eight days time, Mark Carney takes over as the Governor of the Bank of England say Harris & Co accountants Northampton who specialise in providing innovative accountancy services to ambitious small and medium sized owner managed businesses in Northampton.
Time to review the achievements of his predecessor, Mervyn King.
In 2003 when King became Governor, inflation was 1.3% and had not been above the target 2% for six years. The economy had been growing for more than a decade.
However, inflation is now 2.7% and it has been above the 2% target for 81 out of the last 96 months. Time was if inflation went above the target, the Governor had to write a letter of explanation to the Chancellor. Now, King has missed the target so often, that he’d spend all his time writing letters so they don’t bother anymore!
In 2003 the economy was growing at 3.8%. Now it’s been flat for four years and interest rates have been at the record low of 0.5% for that period.
Up to 2007, King repeatedly said that British banks were sound and perfectly capable of weathering storms arising from bad USA sub prime loans!
The new incumbent can’t do any worse!