Carney Steering BOE in Scots Vote as Quebec Casts Shadow
Mark Carney’s history is catching up with him.
Having watched Quebec’s attempt to break away from his native Canada in 1995 while working at Goldman Sachs Group Inc.
Scots go to the polls in three days, and with the latest surveys making the vote too close to call, Carney will cut short a trip to international meetings in Australia this week to help shore up financial stability in the event of a “yes” vote.
Pro-union “no” campaigners last week seized on his comments to lawmakers that an independent Scotland is incompatible with the use of the pound.
“His challenge is to retain the integrity and the independence of the BOE, and so far, with what he’s said about reserves, all the way through he’s been very straight down the line,” said Grant Lewis, an economist at Daiwa Capital Markets in London.
Should Scotland choose to splinter this week, the BOE is on the hook to address any financial stability issues during the 18-month transition.
That plebiscite was also on a knife edge, with the “no” vote winning by 50.
Still, the situation Carney confronts may not be as complicated, nor the consequences as dire, as those once faced by Mario Draghi.
“If Scotland left we’d find a way to cope and deal, but if Greece had left the euro zone that could have been terminal for the euro project,” said Stewart Robertson, an economist at Aviva Investors Ltd.
Source: bloomberg- Carney Steering BOE in Scots Vote as Quebec Casts Shadow
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