Despite Opposition, Carney Extends Leadership of Bank of England to 2020

Cornelia Mascio
Settembre 14, 2018

Chancellor of the Exchequer Philip Hammond ended days of speculation on the governor's future, telling lawmakers on Tuesday that the Canadian won't step down as planned in June 2019.

In a statement released by the Treasury, Hammond said: "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".

"I am willing to do whatever I can in order to promote both a smooth Brexit and an effective transition at the BoE".

Hammond also confirmed that Carney, who said last week he was prepared to stay in his job beyond next June when his term was due to end, had agreed to remain until 2020.

Mark Carney is to remain in his role as governor of the Bank of England until 2020, it has been announced.

British Treasury chief Philip Hammond, following discussions with Prime Minister Theresa May, appears to have approved of Carney's performance so far. He made the first decision in the aftermath of the Brexit vote.

Critics have accused him of contributing to "Project Fear".

Last month he warned that the risk of a "no deal" divorce with the European Union was "uncomfortably high" and "highly undesirable".

Having an inexperienced leader at Threadneedle Street at such a moment would nearly certainly be unhelpful.

Anthony Gillham, head of investments at Quilter Investment, commented: "If Carney's tenure is extended he will have his work cut out, but the case for an experienced captain to guide the United Kingdom through unsafe waters has grown stronger as Brexit negotiations have dragged on".

He added that there were "limits" to what monetary policy could do to help ease the price shock for Britons.

Potential candidates to succeed Carney include Andrew Bailey, now head of the Financial Conduct Authority, or colleagues on the BOE's rate-setting committee such as Andy Haldane, Ben Broadbent or Dave Ramsden.

The then-deputy governor, Paul Tucker, had been seen as the favourite for the role before then-Chancellor George Osborne stunned Westminster with the appointment.

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