Carney carries Canadian lessons to the Bank of England

Tue Dec 11, 2012 5:52pm EST
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* Cites need for speedy and transparent action

* Need to have a plan and execute it - even Plan B

* Sees power of flexible inflation targeting

* Examined switch to targeting nominal GDP

By Solarina Ho and John Tilak

TORONTO, Dec 11 (Reuters) - The Bank of Canada's Mark Carney mused about priorities in reply to a question about the lessons he would take to his next job in London, but said he would only discuss Britain's needs when he talks to a House of Commons committee next year.

Asked about lessons he would take to his next position, as the head of the Bank of England, Carney stressed the importance of speedy, transparent action to address potential flashpoints.

He felt Canadian policymakers were open about the depth of their troubles, for example, in the asset-backed commercial paper market and had benefited from the bank's flexible inflation target, which underpins monetary policy.

"We didn't have bank failures and we didn't have other issues ... in part we didn't have those because we made tough decisions in a timely fashion," said Carney, who will leave the Canadian central bank on June 1 and become Bank of England governor on July 1.   Continued...