Carney to stay on at BoE to ensure a smooth Brexit

mark carney

Mark Carney will remain as the Bank of England’s governor until 2020, allowing the governor to see the UK through Brexit.

Phillip Hammond made the announcement on Tuesday via a statement. Carney’s extension was agreed between himself and Hammond.

“I’m delighted that the governor has agreed to stay in his role for a further seven months to support a smooth exit from the European Union and provide vital stability for our economy,” said Hammond in the statement.

Sir Jon Cunliffe, the deputy governor will also have his role extended.

“I’m delighted to announce the re-appointment of Sir Jon Cunliffe for a further term as Deputy Governor, and I’m confident his extensive experience will continue to be a valuable asset to the Bank of England,” Hammond added in the statement.

Carney said in a letter to the chancellor: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit.”

“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.”

The bank’s chief was due to step down June 2019 but when asked last week if he would consider extending his stay, he said: “Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and effective transition at the Bank of England.”

Andrew Sentance, the former member of the Bank of England’s Monetary Policy Committee, said last week that the speculation about Mr Carney’s future was “not very good for the credibility and independence of the Bank of England”.

“It seems like the appointment of the governor is something that is happening between the chancellor and the governor, and is not happening in a transparent way,” he said.

“It seems an awful lot is happening in this appointment process behind the scenes and that is not good in terms of the independence of the Bank of England.”