Mark Carney has warned the City of London should not be forced to accept financial rules from the European Union after Brexit.
The outgoing governor of the Bank of England said Britain shouldn’t’outsource law’ of its financial industry once it divides from Brussels.
He argued it wouldn’t be’desired’ to give the EU a say in how the City operates and alignment with the bloc’s fiscal regulations could’tie our hands’.
Mark Carney, pictured in June last year, is expected to step down since the governor of the Bank of England on March 16
The present bank leader has faced fierce criticism from Brexiteers previously over comments which were seen as being pessimistic concerning what departing the EU might mean for UK wealth.
But he struck a more positive tone at a valedictory interview with the Financial Times because he cautioned Brussels must not be able to order to the City after Brexit.
He explained:’It is not desirable at all to align with our approaches, to tie our hands and to outsource regulation and effectively supervision of the world’s top complex financial system to another jurisdiction.’
Brussels is likely to place pressure on the united kingdom during trade talks this year on the dilemma of monetary regulation and alignment of rules.
The City is easily the largest financial centre in Europe and the bloc will be fearful of being unable to control what occurs there.
The very first face-to-face assembly between them will set the stage for trade talks which are due to kick off shortly after Britain leaves the EU on January 31.
Meanwhile, Mr Carney also used the interview to warn that central banks may be unable to fight off a sharp economic downturn since their monetary policy arsenals are still depleted due to the effect of the global financial crisis a decade ago.
‘It is generally true that there’s not as much ammunition for all the major central banks than they had and I am of the opinion that this situation will persist for some time,’ he explained.
‘If there were to be a deeper downturn, (that requires) more stimulation than a conventional downturn, then it’s not obvious that monetary policy would have sufficient space