LONDON (Reuters Breakingviews) - The race to become Britain’s next prime minister has the potential to spice up a different contest: the one to replace Bank of England Governor Mark Carney.
SINTRA, Portugal (Reuters Breakingviews) - The European Central Bank’s annual gathering in Portugal is this year as much a celebration of its outgoing president, Mario Draghi, as a deep dive into the euro’s first 20 years. The Italian leaves his as-yet-unnamed successor one big unfinished job: pushing up stubbornly low inflation. But he is helping as much as he can before he goes.
PARIS (Reuters Breakingviews) - Central bankers are professional worriers. So it’s hardly surprising that they are increasingly fretting about climate change. When it comes to changing behaviour, they can at best nudge rather than shove.
LONDON (Reuters Breakingviews) - Things can sometimes go right even when they go wrong. The New Zealand Treasury official picked last month to be Ireland’s next central bank boss is facing an investigation Down Under about how he handled early accessing of sensitive budget information. If Gabriel Makhlouf’s appointment goes awry, the Irish finance ministry’s delight at recruiting overseas talent will look premature. But it would give Dublin a second chance to pick an ideal homegrown candidate.
LONDON (Reuters Breakingviews) - Mario Draghi’s ultra-loose monetary policy will outlast his tenure as European Central Bank president. The Italian will finish his eight-year term at the end of October without once having raised interest rates. As he heads for the exit, he is putting easing back in play.
LONDON (Reuters Breakingviews) - Imagine, for a moment, that the next head of the European Central Bank was chosen on merit. In reality, the process of selecting Mario Draghi’s successor is likely to involve a complex tug of war between rival governments as they carve up the European Union’s top jobs. But as Finnish central bank chief Olli Rehn told a Reuters Breakingviews event on Wednesday, the deciding factor should be competence rather than nationality. If politicians could be persuaded to play along, they could judge the candidates on three broad criteria.
LONDON (Reuters Breakingviews) - Britain is on the hunt for a top-notch economist, with the skills of a diplomat and the hide of a rhino. The successor to Mark Carney, who steps down as Bank of England governor next year, will have to navigate the economic and political minefields of Brexit. Breakingviews’ interactive yardstick helps sift through the potential runners and riders.
WASHINGTON, D.C. (Reuters Breakingviews) - Bubbles can be comforting from the inside. Especially the one inhabited by finance officials attending International Monetary Fund meetings, like last week’s shindig in Washington, D.C. But their cosy world is being disrupted by the rise of zero-sum thinking – the idea that for every winner there must be a loser.
LONDON (Reuters Breakingviews) - Good advice is useless unless it is followed. That may be the problem for the International Monetary Fund, whose latest economic prescriptions are sound but either hard to put into practice or almost certain to be ignored.
LONDON (Reuters Breakingviews) - The European Central Bank is heading for somewhere between a rock and a hard place. Weakening economic activity is raising the chances of President Mario Draghi’s successor following in the footsteps of the Bank of Japan, which has kept policy rates ultra-low for two decades and adopted ever more radical measures. A “Japanisation” of monetary policy would exact a heavy toll on Europe’s lenders, which would only make the central bank’s job harder.