Mark Carney to stay on at Bank of England until 2020

Mark Carney had originally planned to return with his family to Canada this year

Mark Carney had originally planned to return with his family to Canada this year

Though Carney's six-month extension is shorter than expected - most were predicting he would carry on for another full year - the decision reduces one uncertainty surrounding Brexit.

However, earlier this year Chancellor Philip Hammond said he might look overseas again for a successor to Carney.

The seven month extension is created to help smooth Britain's exit from the European Union and is likely to ease worries in the markets.

Chancellor Philip Hammond announced the news on Tuesday, saying Mr Carney had agreed to the extension "despite various personal pressures".

Sir Jon Cunliffe, Bank of England deputy governor with responsibility for financial stability, has also been re-appointed for a second five-year term that will last until October 2023.

Should Brexit go smoothly and United Kingdom economic activity pick up steam in 2019 a Carney-led Bank of England would nearly certainly accelerate the pace of interest rate rises as per recent guidance.

British Treasury chief Philip Hammond, following discussions with Prime Minister Theresa May, appears to have approved of Carney's performance so far. "Whoever would take over, had they taken over in June next year, or now its going to be January 2020, would be looking at a very gradual policy normalization, subject to the negotiations in terms of our relationship with the European Union".

'Accordingly, I am willing to do whatever I can in order to promote both a successful Brexit and an effective transition at the Bank of England and I can confirm that I would be honoured to extend my term to January 2020.

In remarks that will remind Brexiteers why they find him so frustrating, Mr Carney warned that a no deal Brexit would send prices rising and hit real incomes.

"It is an important time and we have an important supportive role to make sure whatever Brexit the government negotiates, it is a success, and providing a measure of continuity should help that".

Carney has already extended his term once at the Bank in a move to ensure continuity through the Brexit negotiations.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.