Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Bank of England denies holding currency union talks with Scottish government

Bank of England denies holding currency union talks with Scottish government

The Bank of England has refuted Scottish finance minister John Swinney’s claim that the Scottish government is having technical discussions with the Bank over proposals about future monetary arrangements north of the border ahead of the independence vote.

Following Bank of England governor Mark Carney’s comments on Wednesday about contingency plans around the future of the Scottish currency, Swinney said: ‘The Scottish government has had technical discussions with the Bank of England regarding our proposal for a currency union and we welcome their continued acknowledgement that the Bank will introduce whatever the politicians decide.’

However, the Bank categorically denied this yesterday, saying it is up for Westminster and the Scottish parliament to negotiate the design of any changes to UK monetary and financial arrangements.

‘The Bank notes the comments made by the finance cecretary of the Scottish government regarding technical discussions between officials of the Scottish government and the Bank of England,’ a spokesman said in a statement.

‘To be clear, consistent with its statement in December 2012, the Bank of England has not entered into discussions with representatives of the Scottish government about proposals for future monetary arrangements in Scotland.

‘As the governor said [on Wednesday], the design of any changes to UK monetary and financial arrangements would ultimately be a matter for negotiation between the Westminster and Scottish parliaments. The Bank of England will deliver whatever remit it is given.’

The Bank clarified that it has only answered technical questions from representatives of the Scottish government and added: ‘We have not entered a dialogue about the possibility of changing monetary arrangements for Scotland in future.’

Indeed, Carney was loath to discuss contingency plans when speaking at the release of the Bank’s quarterly inflation report this week, although he said it has plans in place for ‘various possibilities’.

Carney added: ‘It is never a good idea to talk about contingency plans in public other than to assure people we have contingency plans.’   

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Play Baillie Gifford's Snell bullish on India's prospects following election

Baillie Gifford's Snell bullish on India's prospects following election

Citywire AA-rated manager is seeing good overall growth for the Asia reason but is wary of varying valuations.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter