Former Bank of England governor Mark Carney has denied speculation about him joining a future Labour government.
Carney, who led the Bank from 2013 to 2020, insists his time in UK officialdom is over.
Dismisses Political Role
When asked about a potential official position or offers, Carney laughed and said, “My time in UK officialdom is over.”
Speculation about Carney’s political career arose after he endorsed shadow chancellor Rachel Reeves at a Labour Party conference. He is also advising her on creating a National Wealth Fund.
Focus on Climate Initiatives
Despite these endorsements, the Canadian financier has kept his distance from frontline politics. He is seen as a potential successor to Justin Trudeau in Canada.
Since leaving the Bank of England, Carney has focused on global efforts to finance net-zero initiatives. He advocates for changes in government rules to make the Bank of England and Financial Conduct Authority (FCA) more active in achieving net-zero.
Comments at Deloitte Event
At a Deloitte event at the London School of Economics, Carney called for a refreshed remit for financial authorities to support the government’s net-zero objective.
These remarks came after Chancellor Jeremy Hunt downplayed climate change in the Bank of England’s objectives, a move Rachel Reeves aims to reverse.
During his tenure, Carney emphasised climate change and green finance. However, his predecessor, Mervyn King, argued that this distracted from controlling inflation.
Economic Observations
Carney noted that global shocks have left the UK economy 40% smaller than if it had grown at the pre-financial crisis rate.
He mentioned that the UK and other countries are facing significant changes in geopolitics and economic policy, the likes of which have not been seen since the fall of the Berlin Wall.
Private Capital’s Role
Given these pressures and sluggish growth, Carney stressed the importance of private capital in the net-zero transition.
He warned the UK against trying to match the US’s Inflation Reduction Act, citing a lack of fiscal capacity.
“Budget constraints require a targeted approach and striking the right balance,” he concluded.
Focus on Future Challenges
Carney has consistently highlighted that private capital must lead the net-zero transition.
He believes in the necessity for a balanced approach to encourage domestic activity and utilise lower-cost solutions through imports.
Mark Carney remains focused on climate and economic issues post-Bank of England.
His cautious stance on political roles underscores his commitment to global financial initiatives.