New coin and new broom at BoE

Britain is shaking up the Bank of England, breaking the all-male grip at the top and appointing a chief economist who has been highly critical of the banking industry. Hayley Platt looks at how the revamp has gone down with investors.

Published

12 months ago

Categories

Finance, World

Topics

Finance, Markets, Europe

People

Hayley Platt, Tom Vosa, Paul Fisher

Places

Europe, London, United Kingdom

Companies

Bank of England

Transcript

The UK's new 12-sided coin is described as a "giant leap into the future" It'll be much harder to forge. And is being introduced because 3% of the coins currently in circulation - that's 45 million pounds - are fake. The 300-year-old Bank of England is getting a similar makeover. The current one doesn't have an authenticity problem. But reform, says governor Mark Carney, is long overdue - particularly when it comes to the central bank's focus on inflation. SOUNDBITE: Mark Carney, Governor, Bank of England, saying (English): "This reductionist view of the central banks role that was adopted around the world was fatally flawed. In particular it failed to recognise that financial stability is as important an objective of macros economic policy as price stability." There's been a staff shake-up too. Ben Broadbent will be deputy governor along with Nemat Shafik - one of two women promoted into top jobs. NAB's Tom Vosa says the changes reflect the new focus away from interest rates - which Carney again promised would remain low for a while.. SOUNDBITE: Tom Vosa, Head of Markets, National Australia Bank, saying (English): "I think it's fair to say that the switch up between the FPC executive director Andy Haldane and Spencer Dale, chief economist suggests that maybe Carney wants Haldane to look at how they can use these macro prudential tools in terms of looking at governing inflation using those rather than the interest policy." Carney certainly wants more co-ordination from all his officials and a more global focus. SOUNDBITE: Mark Carney, Governor, Bank of England, saying (English): "The global environment for the foreseeable future has opportunities but is going to be quite risky and so we will continue to have risk coming from abroad that we can prepare for and to some extend we can moderate but we won't be able to escape them and that's why we need to work abroad as well." The changes - carried out with government approval - are also designed to help the Bank carry out its new supervisory role. And Carney insists moving Paul Fisher - a current deputy - isn't linked to criticism over his handling of the alleged manipulation of London's currency markets. That ongoing global scandal is proving increasingly costly.