The strong bond between Mark Carney and Rachel Reeves can be traced back to the Brexit referendum campaign. Photo: Jordan Pettitt/PA Wire
When a Tory donor first met Mark Carney at a glittering business event in New York, he was clearly impressed.
“He was very trustworthy, very experienced, very thoughtful – and our policies were similar. «, the financier recalls.
Shortly after this meeting of views, the couple began to support the Labor Party.
While a former Tory donor began giving money to the opposition, what a former Bank of England governor gave Labor connections and credibility.
Carney was a star at the Labor Party conference last year in a video in which he gushed about Rachel Reeves , shadow chancellor.
“Rachel Reeves is a serious economist. She started her career at the Bank of England, so she understands the big picture,” he said in the clip.
“But, crucially, she understands the economics of work, place and family. And, listen, we have no time to bring her energy and ideas to life.”
Sources close to Labor said Carney's support was seen as the main prize in the race to position itself as the party of business ahead of the general election.
«Reeves' team couldn't believe his wholehearted support at the Labor Conference — video was a real bonus, far exceeding all expectations,” says a person close to the party.
“I think they were hoping for political approval, but they got much more personal and political approval.”
For a former governor, the transition from public servant to partisan political player is unusual. Lord King, Carney's predecessor, took a seat in the House of Lords as an independent peer after leaving the Bank, refusing to support any party.
Last week it was announced that he would take on a new role as president of Marylebone Cricket Club. Eddie George, governor until 2003, also received a peerage without party affiliation and a number of city positions.
A person who worked with Carney notes that the former banker always had strong political instincts. Most recently, in November, the Canadian said he was considering replacing Justin Trudeau as head of his country's Liberal Party.
“Given that he clearly has ambitions in the Canadian Liberal Party, this is a fairly natural balance of power. said a former colleague of Carney.
Although Carney and Reeves never crossed paths at the Bank of England, they have known each other for many years, according to sources close to Labour's shadow cabinet minister.
The strong connection between Reeves and Carney can be traced back to 2016, when the then-governor was under intense pressure from pro-Brexit conservatives amid an intense referendum campaign.
Faced with hostile questioning from pro-Brexit MPs, Carney found Reeves coming to his defence.
“If anyone's reputation was damaged there, I don't think it was the Bank of England » Reeves said at a Treasury Select Committee hearing in May 2016 after Sir Jacob Rees' hostile questioning of Carney by Mogg.
She then offered him the chance to outline what he saw as the economic dangers of voting to leave the EU, which he obliged, warning of everything from slowing economic growth to falling incomes and rising mortgage costs.
“Our Essence «is that there is likely to be a significant slowdown in economic growth and likely a marked increase in inflation,» Carney told MPs.
However, Carney was not considered overtly Labor-leaning when he left the Bank. As Prime Minister, Boris Johnson appointed him as financial adviser at the COP26 summit in 2020, months before Carney was due to resign from the Bank of England.
The appointment reflected the fact that Carney has accumulated experience in the field of climate change. finances, while the governor. He has often spoken publicly on the topic, and in 2017, under his leadership, the Bank became a founding member of the Network of Central Banks and Supervisors for Greening the Financial System.
Reeves appointed Carney to the working group. We are exploring how to create a sovereign wealth fund focused on investing in green industries.
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