Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. 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 Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter