Economy

BOE Chief Carney To Stay To 2020 As UK Faces Brexit Crunch

BOE Chief Carney To Stay To 2020 As UK Faces Brexit Crunch

The Bank of England's Mark Carney agreed Tuesday to extend his period as governor by six months until January 2020 in order to help out in the initial phases of Britain's exit from the European Union.

Though the extension is shorter than expected - most were predicting Carney would carry on for another year - the decision does help reduce one of the immediate uncertainties surrounding Brexit.

"That Mark Carney wants to stay should worry everyone, but the shocks facing the economy could be deeply damaging - jobs and our prosperity are at risk".

The chancellor of the exchequer Phillip Hammond has requested that Carney remain for an extended period, which the Governor agreed to in a letter of acceptance.

On Sir Jon's reappointment, Mr Hammond said: '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'.

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Hammond also said that Carney would provide "vital stability" for Britain's economy during the Brexit transition.

Britain is due to leave the E.U.in March 2019 but there is uncertainty as to how exactly it will depart the trading bloc.

The governor and Prime Minister have clashed in the past with May commenting in 2016 on how there would be "bad side effects" for Carney's monetary policy and Carney taking a negative view on the future of Brexit. He initially said he'd serve just five years of what is usually an eight-year term, but following the Brexit referendum agreed to remain in place an additional year to the end of June 2019. "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 decision also raises questions about the government's grasp of the Brexit process if Carney's presence is needed to ensure stability, or the United Kingdom treasury is struggling to find a replacement while it focuses on negotiations.


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