© Jonathan Loynes
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I do not think there would be many reforms overtaken from Canada, as they have not experienced the same kind of problems as the U.K has. In fact, the Canadian economy is being more resilient and stronger. The Canadian officials did not have to engage themselves in unconventional policy measures like the U.K has done. One thing that Mr. Carney is referring to is the Bank of Canada that was the first even before the U.S Fed to give some form of guidance in terms of the futures stance of monetary policy. However, I do not believe that it would be a huge change from what the Bank of England has already been doing.
Do you believe that these reforms will actually work for the U.K as well? Or are there any significant differences between two banking systems that might cause obstacles?
If we refer to a slightly more flexible approach to the monetary policy, then it may work in the U.K as well. However, it would not make a dramatic difference as the Bank of England is already applying quite a lot of flexibility in setting monetary policy.
In your opinion should we expect any major impact on the nation's currency in the short and in a long term?
We are expecting the Pound to strengthen against the Euro, primarily due to the fact that the Eurozone's currency will weaken over the course of the next six months as we are expecting the crisis in the Euro bloc to re-escalate to a certain degree. We definitely expect the Sterling to appreciate against the Euro, but we believe that the Pound's performance mainly would be driven by the current situation in the Eurozone rather than by economic developments in the U.K or Mr. Carney becoming the new Bank of England Governor.