Hello everyone and welcome to At Bairns. I'm Andy Surwer.

And welcome to our guest Mark Carney, former head of the central banks of England and Canada,

and now a senior executive at Brookfield Asset Management, Bloomberg as well as the United Nations.

Busy guy. Mark, nice to see you. Good to see you, Andy.

Let's start off with monetary policy, Mark.

I think that you've said recently that you expect interest rates to stay higher longer, which has become

somewhat of a consensus. And I'm wondering how we got from transitory to higher longer.

Well, first, inflation was higher for longer, and that was part of the transition,

if you will, of the stance of monetary policy. And I want to give credit to the Fed and other central

banks. They've had to work hard over the course of the last 18 months to catch up to what was

going on in the economy. The general message that's coming out of the major central banks, particularly the Fed, is,

number one, policy is now restrictive, so it's going to slow the economy and with that, slow

inflation.

Secondly, it is going to need to remain restrictive for a period of time, therefore higher for longer.

And the third thing, which I think gets a little less attention, and it bounces around

with data, there's always data and some noise, but a little less attention is their bias

is to tighten policy a bit more than to look for immediate opportunities to loosen policy. So you bring that together.

The bigger picture message is exactly that. Rates have reached a level where they're starting

to do their job. They're going to need to stay here for a while. And the data is really going to

need to fill in, particularly on the labor market side and on the inflation side really going to need to fill in particularly on the labor

market side and on the inflation side before we start to see any relief on interest

rates.

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