:00:00. > :00:00.Earlier today, Radio 1 Newsbeat's Tina Daheley hosted
:00:00. > :00:17.Welcome to BBC News school report live. I will be with you for the
:00:18. > :00:20.next 30 minutes as young people question one of the most influential
:00:21. > :00:32.people in the country, the governor of the Bank of England.
:00:33. > :00:42.Thank you all. Thank you for being patient and I am sorry I was late.
:00:43. > :00:45.Later a school come yet again, story of my life! I am really looking
:00:46. > :00:50.forward to having this discussion with all of you and the questions
:00:51. > :00:54.brought in from the country. I want to touch on three things to get as
:00:55. > :01:01.started, if I may. First, how I got here, not coming by train and car,
:01:02. > :01:05.but how I ended up being the governor of the Bank of England.
:01:06. > :01:10.Secondly, the bit about what the bank doors and 30, a bit about the
:01:11. > :01:15.economy. How is changing and what it means for equality. That beset
:01:16. > :01:18.upfront that it is a total accident of history that I became the
:01:19. > :01:22.Governor of the Bank of England. There's a number of people here
:01:23. > :01:29.wondering how it could have happened. I was born in a place in
:01:30. > :01:34.the far north of Canada, a town of 2000 people and I grew up in a city
:01:35. > :01:42.cold Edmonton which at the time was about the size of Coventry and I
:01:43. > :01:48.went to a school just like this. I was fortunate to have teachers who
:01:49. > :01:53.are motivating me to find out about the world and explore horizons and
:01:54. > :02:02.as I studied, I became interested in economics. I thought it explained
:02:03. > :02:09.how the world was interconnected, how it worked and how it could be
:02:10. > :02:13.made better. After university, I worked as an economist in the public
:02:14. > :02:20.sector and then the private sector. I didn't have a fixed plan or some
:02:21. > :02:27.grand vision that I would end up here today but I was doing something
:02:28. > :02:31.that I liked, something that I had a passion for and if you do that, you
:02:32. > :02:38.will succeed. It is hard to tell exactly where or when, whether it is
:02:39. > :02:47.in sport or drama or literature or whatever, you will succeed. What
:02:48. > :02:51.happens in life and this was something John Lennon said, life is
:02:52. > :02:54.what happens when you are making other plans so you cannot map
:02:55. > :02:59.things. John Lydon was a member of the Beatles and the Beatles were a
:03:00. > :03:05.rock band in the 60s, I should point that out! What I find is, whenever I
:03:06. > :03:08.meet people who are old enough to remember who the Beatles where, they
:03:09. > :03:13.are normally surprised at where her career has taken them but whether
:03:14. > :03:19.they are happy depends on whether or not they have followed their
:03:20. > :03:26.passions and that is my first point, my tiny bit of career advice to you.
:03:27. > :03:33.Secondly, I want to touch on what the Bank of England a chilly does.
:03:34. > :03:40.It was founded in 1694 so over 300 years ago and its original mission
:03:41. > :03:45.which is to promote the good of the people of the UK and then we add on,
:03:46. > :03:50.how do we do that? I'm maintaining monetary and financial stability.
:03:51. > :03:57.What does that mean? It's basically means a series of things to do with
:03:58. > :04:02.money. So, the first thing we do is we print money, we create the
:04:03. > :04:07.banknotes. This week, we have just launched the new ?5 note that as
:04:08. > :04:14.Winston Churchill on one side and Her Majesty The Queen on the other.
:04:15. > :04:19.My colleagues, I hope, will pass if you around so you can look at them
:04:20. > :04:23.and see how they are different. Everyone who asks a question from
:04:24. > :04:28.me, can keep one. What you will see is that they are different
:04:29. > :04:32.banknotes. They are made from a type of plastic, they are cleaner, safer,
:04:33. > :04:36.stronger and that means they can last a spin in the washing machine,
:04:37. > :04:40.they can be crumbled and folded and they can go through many trials and
:04:41. > :04:45.relations and still hold their shape. They are also much more
:04:46. > :04:51.difficult to counterfeit sort you can use them with confidence. The
:04:52. > :04:56.second thing the Bank of England doors with respect to money is, we
:04:57. > :05:00.process it. Every transaction, every single payment in this country
:05:01. > :05:10.ultimately settled through the Bank of England. That totals in a single
:05:11. > :05:16.day to half a trillion pounds or ?3 million a second. We have the
:05:17. > :05:24.systems that ultimately make those payments. The third thing we do with
:05:25. > :05:28.respect to money is, we keep family. By that I mean we keep inflation
:05:29. > :05:32.low, stable and had a table and that means we sometimes have to change
:05:33. > :05:36.interest rates, we have two engage in purchasing assets and that is
:05:37. > :05:40.what we announced a few weeks ago, a series of initiatives in order to
:05:41. > :05:49.make sure that inflation remained low and stable as this economy was
:05:50. > :05:53.adjusting and it will just, to the decision to leave the EU, we want to
:05:54. > :05:57.make sure we can support jobs and wages while we go through these
:05:58. > :06:02.adjustments. The final thing we do with respect to money is, we make
:06:03. > :06:06.sure it is secure so it is secure in the banks and the financial system
:06:07. > :06:13.is robust because the last thing you want to worry about is your savings
:06:14. > :06:16.out of a bank when you want it and we want to make sure that our system
:06:17. > :06:21.can absorb shocks that might happen around the world so that people in
:06:22. > :06:26.Coventry and across the UK can just get on with their daily lives.
:06:27. > :06:30.Really, what we do in the end is support confidence in money and all
:06:31. > :06:35.aspects of money. The thing about money bill is, it is not an end, it
:06:36. > :06:40.is just a means to an end. The reason we have money is to finance
:06:41. > :06:45.companies or help companies produce the goods and services we all use to
:06:46. > :06:53.help charities do their jobs to help support the arts, culture and sport.
:06:54. > :06:58.What money really does is help our economy I just and most importantly,
:06:59. > :07:02.advance and that brings me to my last point which is just around the
:07:03. > :07:09.pace of change and the future of the economy. It is fair to say that the
:07:10. > :07:15.economy is changing and advancing at a much more rapid rate than it had
:07:16. > :07:19.in the past. There are a series of economic and technological and even
:07:20. > :07:24.cultural shifts that are changing how we all communicate, work and
:07:25. > :07:30.live and this is an example, the way this has been networked in and
:07:31. > :07:37.people across the country are using multiple channels to reach people
:07:38. > :07:41.again across the country. That is an example of some of these changes and
:07:42. > :07:47.these are and amended breakthroughs, they bring tremendous opportunities.
:07:48. > :07:53.Yours is the generation that will seize the opportunities for ranging
:07:54. > :08:03.from communications to biotech, all these different types of engineering
:08:04. > :08:11.that will change the way we work. In the coming age, he will grow up in
:08:12. > :08:18.your careers in a system where anyone can produce anything anywhere
:08:19. > :08:22.through 3-D printing. Where anyone can broadcast a performance globally
:08:23. > :08:28.through a variety of channels and media, that is true today. And where
:08:29. > :08:35.any business or service can sell their goods and services to places
:08:36. > :08:41.as far afield as China. You can be a small business located right here in
:08:42. > :08:47.Coventry or where I grew up in Canada. There really is each and
:08:48. > :08:51.this opportunity for what I would call mass creativity, to use your
:08:52. > :08:57.imagination to create things and take advantage of that. In order to
:08:58. > :09:03.truly take advantage of that, literally requires is a dedication
:09:04. > :09:07.to learning. Continuous learning. And to go back to my first point,
:09:08. > :09:11.the easiest way to do learn continuously, the most enjoyable way
:09:12. > :09:18.and ultimately the most productive way is to learn about things that
:09:19. > :09:25.you care about. What interests you? Your passions. The purpose, as I
:09:26. > :09:32.understand it of this element is just to expose you to different
:09:33. > :09:37.careers, opportunities, parts of the economy and society that might
:09:38. > :09:40.interest you, to allow you to expand your imagination in terms of what is
:09:41. > :09:44.possible because I can tell you, if I can be standing here as governor
:09:45. > :09:48.of the Bank of England, you can do whatever you want. With that, I will
:09:49. > :09:58.join Tina and you will ask me questions. Thank you very much.
:09:59. > :10:05.Let's get on with the questions and the first one comes from here and it
:10:06. > :10:10.is from Martina. I have a question from Melanie from a school in London
:10:11. > :10:17.and she is asking, how is your job relevant to young people like us?
:10:18. > :10:23.Well, I think what I just said, which is it is relevant because
:10:24. > :10:28.young people like yourself or the lady who asked the question and do
:10:29. > :10:31.my job if they want in the full lists of time if that is the type of
:10:32. > :10:38.thing they are interested in. More broadly, it is relevant because if I
:10:39. > :10:42.and my colleagues do our job properly, if we deal with all these
:10:43. > :10:46.issues related to money, you don't have to worry about them. In other
:10:47. > :10:49.words, you don't have to worry about the financial system being there, it
:10:50. > :10:53.will be there. You don't have to worry about inflation or whether or
:10:54. > :11:02.not your banknote is counterfeit. You can focus on more interesting
:11:03. > :11:14.things which are your passions. The second question comes from Ciaran. I
:11:15. > :11:17.have a question from grace, aged 14 and she asks, why do we still have
:11:18. > :11:23.pennies when we cannot buy anything by them? That is a very good
:11:24. > :11:27.question. It is a question for the Royal Mint who produces the pennies,
:11:28. > :11:32.we just produce the banknotes. I will say that in a number of other
:11:33. > :11:37.countries, because the penny is not used very frequently and to be
:11:38. > :11:49.honest, I rarely see them, they have done away with the penny and one of
:11:50. > :11:58.the interesting things, what they did in other cases, they used the
:11:59. > :12:02.existing pennies, they give people the opportunity to donate them to
:12:03. > :12:08.charity and it was very successful but it is a decision for other
:12:09. > :12:12.people and they are still legal tender and can be used to buy
:12:13. > :12:17.things. Do you think it is a good idea? At some point. I made the
:12:18. > :12:23.point that we keep inflation low, stable and collectable. What that
:12:24. > :12:29.means is, what Parliament tells us to do is make sure it averages about
:12:30. > :12:33.2% a year. Inflation is how you measure the cost of living? Exactly,
:12:34. > :12:39.so the cost of a chocolate bar should go up by 2% every year.
:12:40. > :12:47.Ideally, we Jews are going up more than that so people are getting
:12:48. > :13:02.ahead. -- wages. Over time, that means the value of a penny goes down
:13:03. > :13:05.so at some point it does make sense. My name is Ciaran, why should we
:13:06. > :13:11.save money in a bank when interest rates are so low? You see before a
:13:12. > :13:17.variety of reasons and part of the reason, certainly when I save, is to
:13:18. > :13:22.put money aside for a bigger purchase in the future. In your
:13:23. > :13:28.life, there will be times when you get money, maybe you get a gift for
:13:29. > :13:35.your birthday or a holiday, maybe in the summer or you get a summer job
:13:36. > :13:38.and you get some money, you don't want to spend all that immediately
:13:39. > :13:46.necessarily because you might want to save up for a bike or something.
:13:47. > :13:50.Ultimately, people save up for a house and the recently put the money
:13:51. > :13:53.in the bank is they know the bank is secure and that money will be there
:13:54. > :14:02.when they need to take it out. Those are some reasons. We recognise that
:14:03. > :14:05.by keeping interest rates so low, we are giving incentives for people to
:14:06. > :14:15.spend or to invest in riskier things. What is the best and parts
:14:16. > :14:22.worst of your role as the governor of the Bank of England? The best
:14:23. > :14:27.part of my job is, you might expect me to say this, but the best part of
:14:28. > :14:31.my job or things like this. I have the privilege, I get to go around
:14:32. > :14:37.the country. I often go to schools and I get to go to businesses, I see
:14:38. > :14:41.really interesting businesses across the UK, learn something about them,
:14:42. > :14:46.talk to people who are moving forwards, inventing and I find that
:14:47. > :14:53.tremendously exciting because what we do at the bank is quite high
:14:54. > :14:58.level in many respects. We make big decisions about interest rates and
:14:59. > :15:04.where the economy is going but it is really nice, it is fun and
:15:05. > :15:08.interesting and energising to see the decisions in the economy. That
:15:09. > :15:24.is the best thing. In terms of the worst thing, well, it is probably
:15:25. > :15:27.candidly, it is that the nature of international meetings means that
:15:28. > :15:31.they are always on the weekend and so it means that one out of every
:15:32. > :15:36.three weekends, I have to go somewhere to work for the weekend
:15:37. > :15:40.and then I come back, that is probably the worst thing. But that
:15:41. > :15:46.is not too bad, I don't think anyone really feels sorry for me that I had
:15:47. > :15:51.to go to China a few weeks ago the Washington! Even the worst things
:15:52. > :16:02.are pretty good. What would you say the toughest day in your job has
:16:03. > :16:10.been so far? The toughest day was the overnight morning of the
:16:11. > :16:14.referendum. The reason that was a tough day was not because of the
:16:15. > :16:19.result but because we had put in place a bunch of plans, so we had
:16:20. > :16:23.planned for either outcome but in order to make sure those plans
:16:24. > :16:26.worked, we had to have a huge and amber of people coordinate with
:16:27. > :16:31.people but here in the UK and people who do I types of job around the
:16:32. > :16:36.world and ensure that everyone did the right thing at the right time so
:16:37. > :16:44.that nobody noticed any ripples as a result of it. That was tough because
:16:45. > :16:49.you have what we call execution error, you have a plan but you have
:16:50. > :16:53.to put it in place and there is always concerned that it won't work
:16:54. > :17:01.perfectly, you haven't anticipated everything or somehow you just want
:17:02. > :17:05.X equate -- executed the way it is. Would you see is what? Yes,
:17:06. > :17:08.definitely because everything I said about money that was supposed to
:17:09. > :17:18.happen happened and people did move on from there. This question is from
:17:19. > :17:25.Caitlin, aged 16. If you could give advice to your younger self,
:17:26. > :17:36.financial advice, what would it be? I cast my mind back, I would have
:17:37. > :17:42.taken a portion of the money I saved, because I always dry to save
:17:43. > :17:45.something of what I earned, even as a discipline, and I would have taken
:17:46. > :17:52.some of that money and I would have put it in some sort of equity funds,
:17:53. > :18:00.something that wasn't just a poor savings vehicle. My younger self
:18:01. > :18:06.ended up owing a lot of money through student loans so is became
:18:07. > :18:09.more about paying back those loans but it is not a bad thing when you
:18:10. > :18:15.are young to have something that will grow that has higher risk but
:18:16. > :18:23.you've got a long life so you can ride out that risk. Did you make any
:18:24. > :18:27.mistakes with money when you were younger? Yes, of course. I didn't
:18:28. > :18:34.follow my advice all the time of when you get a gift, don't spend it
:18:35. > :18:42.all right away. I didn't always shop around for the best deal on an
:18:43. > :18:48.interest rate or on a loan. I lost money lots of times. By the way, we
:18:49. > :18:54.need all those fibres back! Just kidding. We have had lots of
:18:55. > :18:58.questions about Brexit which is a shorthand way of saying the UK
:18:59. > :19:04.exiting the European Union after Britain voted to leave in June. Next
:19:05. > :19:18.question please. How are you made aware of the Brexit result and what
:19:19. > :19:23.was your first thought? I was aware, I took a two hour nap until about
:19:24. > :19:32.12:30 in the morning and then I started watching the results and the
:19:33. > :19:35.plan, we had a plan for the referendum night and the plan was
:19:36. > :19:39.that I and others would come into the office around three in the
:19:40. > :19:44.morning. There was a bunch of people who worked on a market side because
:19:45. > :19:50.we monitored the markets and they were there all through the night so
:19:51. > :19:55.I came in at about 3:30 and like every body else, I didn't have any
:19:56. > :19:59.special information, just as the polls were being reported on the
:20:00. > :20:08.BBC, I could see where the result was coming. My reaction was to make
:20:09. > :20:12.sure that the big, fat plan that we had, but that was being put in place
:20:13. > :20:18.and making sure everyone was doing what they needed to do, including I
:20:19. > :20:23.knew that I would likely have to make a statement in the morning and
:20:24. > :20:27.still I give a little bit more thought to what I was going to say
:20:28. > :20:33.than I had in the days in the run-up when I made a draft. You talked
:20:34. > :20:36.about it being the toughest day in your job so far, is that because you
:20:37. > :20:44.work at a size to attacking sides at the time? Not at all. The concern
:20:45. > :20:50.was really just about getting it right. The referendum could have
:20:51. > :20:55.gone either way, that is why you have these thoughts. It is
:20:56. > :21:01.absolutely our responsibility to be prepared for these types of
:21:02. > :21:05.contingencies. Had everybody in the world, in the financial world,
:21:06. > :21:12.focused on this event and we had to get it right. I felt a trim 's
:21:13. > :21:18.responsibility to make sure that we had prepared properly and that we
:21:19. > :21:27.executed as well as possible. That is a stream. It is interesting and
:21:28. > :21:31.exciting and important and I think we did absolutely get it right but
:21:32. > :21:40.it was a tough day because it is like a big game, is exciting but
:21:41. > :21:45.also tough. The next question comes from James. I would like to ask,
:21:46. > :21:52.which country outside of the U do you see us boast trading allies post
:21:53. > :21:56.Brexit and from your experience, which country is at the best to do
:21:57. > :21:59.business with and why? The first thing to say is that one of the
:22:00. > :22:05.tremendous things about this economy but centuries is that it has been
:22:06. > :22:13.one of the most open economies in the world. In this region you think
:22:14. > :22:20.about jaguar, Land Rover and the aerospace industry, it has a huge
:22:21. > :22:27.history of great exporting dummies. Most countries want to trade with
:22:28. > :22:33.the UK. There are a number of countries, including my home country
:22:34. > :22:37.of Canada, and Australia who I am quite confident will want to have
:22:38. > :22:45.deeper trading relationships with the UK because of what the UK has to
:22:46. > :22:50.offer in business and services and manufacturing and design and
:22:51. > :22:57.culture, influence of services. So the opportunity is very large. The
:22:58. > :23:01.other thing I will say is, one of the things that is exciting about
:23:02. > :23:09.technology and where the global economy is going is that trade is no
:23:10. > :23:14.longer limited to just big firms or even a medium-sized firms. You can
:23:15. > :23:19.be a small firm, three or five people based here and you can sell
:23:20. > :23:24.around the world. That is increasingly going to be the case.
:23:25. > :23:28.That is tremendously exciting and it should be exciting for love you but
:23:29. > :23:35.it really plays to the strengths of the UK because this is a really
:23:36. > :23:45.truly innovative country. If you had to pick one the country? Well,
:23:46. > :23:55.Canada, clearly! Let's move on. Amy has a question next. Max wants to
:23:56. > :24:02.know if Scotland was to become an independent country, would be still
:24:03. > :24:10.be able to use the pound sterling? If Scotland remained in the EU? This
:24:11. > :24:13.was a big issue if years ago when there was an independence referendum
:24:14. > :24:18.in Scotland and one of the challenges which was part of the
:24:19. > :24:26.debate, it is a technical issue but a really important issue, is that in
:24:27. > :24:29.order to share a currency, so for Scotland to continue as an
:24:30. > :24:34.independent country, if it wanted to continue to share the pound
:24:35. > :24:38.sterling, you need to share some degree of your sovereignty so you
:24:39. > :24:45.cannot be fully independent and have a stable currency union. So there is
:24:46. > :24:53.a tension between the two and part of the reason for that, there is a
:24:54. > :24:57.variety of economic reasons but part of the reason for that goes back to
:24:58. > :25:00.the fourth thing I talked about in terms of money and what the Bank of
:25:01. > :25:05.England dolls and that is about making sure the banks are secure and
:25:06. > :25:15.stable because it is much harder to ensure that is the case if you share
:25:16. > :25:17.a currency but don't have some fiscal arrangement or common flows
:25:18. > :25:22.of money across the government level. I am going to speed up a
:25:23. > :25:33.little bit. This question is from J next. I am 13. My question is, who
:25:34. > :25:44.is easier to work with, David Cameron or Theresa May? I am so glad
:25:45. > :25:48.he asked that! They are both very professional, incredibly easy to
:25:49. > :25:55.work with, but focused on making the country better. That holds that the
:25:56. > :25:58.Chancellor is that I have worked with, both here and in Canada. These
:25:59. > :26:03.individuals have a lot of pressure on them but they are trying to do
:26:04. > :26:09.the right thing and trying to do it in a way that when they cut across
:26:10. > :26:14.what I do, in a way that is based on the facts and the best judgments.
:26:15. > :26:23.Does that answer your question? It does? Good. Dream job? It can't be
:26:24. > :26:30.the one you're doing? Ice hockey goalkeeper. But to the problem is
:26:31. > :26:39.your guilty pleasure? British big. Most expensive luxury you have ever
:26:40. > :26:45.bought? Pass, I can't think. Favourite film? Phillip Lee.
:26:46. > :26:52.Favourite food? V. How much money have you on you right now? I have a
:26:53. > :26:58.new fibre in my pocket but about 40 quid in my back. Spender or Sabre?
:26:59. > :27:06.At the moment, favour. These are coming in from all over the UK. Cats
:27:07. > :27:13.or dogs? Dogs me but I have a cat! Football or ice hockey? Right now,
:27:14. > :27:18.football definitely. It is incredibly important that you know
:27:19. > :27:26.the personalities in sport. Scatter or Craig David? But UK artists. I
:27:27. > :27:31.can't pretend to know that. Sadly, that is all we have time for. BBC
:27:32. > :27:35.News School report gives young people across the UK the chance to
:27:36. > :27:40.engage with the news and get involved and share their stories. If
:27:41. > :27:48.you want to find out more, go to the website. On behalf of all BBC news
:27:49. > :27:52.reporters here and across the UK, we would like to see a very big thank
:27:53. > :27:53.you to Mark Carney forgetting all of your