Mark Carney claims truce ‘turned Britain into Argentina’, City backs Labor

Mark Carney said Brexiteers’ efforts to create a Singapore-on-Thames resulted in an ‘Argentina across the Channel’ – Arun Shankar/AFP via Getty Images

Investors have thrown their weight behind Labor in a blow to Rishi Sunak’s efforts to repair the Conservative Party’s reputation for good money.

Two-thirds of money managers and traders surveyed by Bloomberg said either a Labor-led government or a Labour-led coalition would be the “most market-friendly outcome” in the next general election.

The majority cited the decline in the mini-budget bond market under Liz Truss as the reason for supporting Sir Keir Starmer’s party, with 80 per cent of the 227 people surveyed saying confidence in British assets had not yet fully recovered. Has happened.

It came as former Bank of England governor Mark Carney accused Ms Truss of turning Britain into “Argentina across the Channel”.

Speaking at the Global Progress Action Summit in Canada, he said: “When the Brexiteers tried to build Singapore on the Thames, the Truss government brought Argentina across the Channel instead – and that was a year ago.

“Those who have little experience in the private sector—those lifelong politicians acting as free marketeers—give little importance to the importance of mission, institutions, and discipline to a strong economy.”

Argentina has become synonymous with economic dysfunction after suffering multiple economic crises, including defaulting on international loans nine times.

Ms Truss’s 49-day tenure as prime minister has seen borrowing costs rise in the wake of her commitment to unfunded tax cuts – Leon Neal/Getty Images

Mr Carney accused “extreme conservatives” in Britain and abroad of using tax and spending cuts as a “Pavlovian response to every problem”, which was “based on a fundamental misunderstanding of what drives the economy”.

The Canadian said: “Nothing, not even far-right populist politicians, can derail our efforts faster than a fiscal crisis, and the market reaction to the truce budget reflected the tough new macroeconomic environment.” Have been underlined.

“Good money and reliable policies will be rewarded, mistakes will be punished. No government will be given exemption.”

Mr Carney, who left the Bank of England in 2020, was speaking at an event that also included Sir Keir, former Labor leader Sir Tony Blair, Canadian Prime Minister Justin Trudeau and former New Zealand Prime Minister Jacinda Ardern.

Douglas McWilliams, vice-chairman of the Center for Economics and Business Research (CEBR), said that Mr Carney was “trying to save” the Bank of England, even though it was too slow to raise interest rates and had “overblown the problem of pension fund liability”. Maintained “Blow it up, which they didn’t tell anyone about.”

He said: “They are trying to blame Liz Truss and Kwasi Kwarteng when in fact they themselves have contributed to this problem.”

Mr McWilliams said Mr Carney’s comments were “absolutely extraordinary” for a public servant.

However, a Bloomberg survey shows that the city’s money managers favor Mr. Carney. Despite efforts by Mr Sunak, a former banker, to improve the party’s reputation, most are still wary of the Conservative Party’s economic record in the wake of the Truce administration.

Borrowing costs rose during Ms Truss’s 49-day tenure as Prime Minister, when she promised to cut taxes without cutting spending and published Office for Budget Responsibility forecasts with her mini-budget. Failed to do.

The survey also shows that Sir Keir’s efforts to woo business and finance through a “Prawn Cocktail Offensive 2.0” are yielding results.

Labor has promised not to impose a wealth tax or drastically increase public spending, which has reassured the city.

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