- Mark Carney, BoE Governor
The Fed's decision to hike interest rates in December last year partly contributed to the turmoil in emerging markets, Bank of England Governor Mark Carney said. Yet, the core root of the problems does not lie solely in the Fed's action, but in emerging markets themselves. Furthermore, Carney reiterated that the conditions necessary for the BoE's Monetary Policy Committee to start normalizing policy were not yet met. Carney is still looking for the renewal of growth above trend, unit labour costs pickup, as well as a continued firming of core inflation. With oil prices damping inflation, economists have pushed back forecasts for a rate hike to the second half of 2016, with some, including Royal Bank of Scotland and BNP Paribas, not predicting a move until next year.
When asked about his governorship at the BoE, Carney said that he would need to decide this year if he is willing to ask to stay on for a full eight-year term instead of five years he indicated when he was appointed. Carney was named to the role in late 2012 by Chancellor of the Exchequer George Osborne. He succeeded Mervyn King at the London-based central bank in July 2013, meaning he reached the half-way point of the five years he said he will serve at the end of 2015.
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