U.K.’s Hammond Says Bank of England Must Not Be Politicized

(Bloomberg) -- The appointment of the next Bank of England governor must not become embroiled in politics, U.K. Chancellor of the Exchequer Philip Hammond warned.

With Treasury officials currently in the process of appointing a successor to governor Mark Carney, Hammond probably won't still be in charge to make the decision himself. A new chancellor will be appointed by either Boris Johnson or Jeremy Hunt, the two remaining candidates to lead the Conservative Party.

Supporters of Brexit have repeatedly slammed Carney as an enemy of the U.K.'s departure from the European Union for highlighting the costs of leaving without a deal.

If a general election brings the opposition Labour Party to power, finance spokesman John McDonnell has said he would consider widening the BOE's mandate to include climate change or productivity. He's also said he'll respect the process for the appointment under a Conservative government.

“It's a vital cornerstone of our institutional structure that the Bank of England remains independent and those who have suggested that they would seek to politicize appointments to the Bank of England would be doing a great disservice to this country and our economy,” Hammond said.

He was responding to a question from fellow Conservative MP James Cartlidge over whether he was committed to retaining the independence of the BOE.

To contact the reporter on this story: Jessica Shankleman in London at jshankleman@bloomberg.net

To contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Brian Swint, Andrew Atkinson

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