Bank of England's Carney to stay until January 2020 to smooth Brexit

  • Bank of England's Carney to stay until January 2020 to smooth Brexit

Bank of England's Carney to stay until January 2020 to smooth Brexit

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.

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.

Speaking in parliament, chancellor Hammond said that he wanted to extend Carney's stay in order, "to ensure continuity during what could be quite a turbulent period for our economy in the early summer of 2019".

Bank of England Governor Mark Carney attends the central bank's financial stability report in central London on June 27, 2018.

Carney said in a letter to United Kingdom treasury chief Philip Hammond.

He will now remain in post until January 2020.

A senior government figure said: "The PM thinks he has done a good job in hard circumstances; he is well respected and has a good global standing".

"I deeply appreciate your support and that of the prime minister". "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".

In a letter to Hammond, Carney says: "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".

Carney took over from Mervyn King as Bank of England governor in 2013, initially committing to a five-year term despite traditional protocol dictating an eight-year term as governor.

Nigel Farage wasn't happy with the announcement that the Governor of the Bank of England is staying on until 2020.

He had originally only meant to remain for five years after joining in 2013, but announced plans to stay an extra year four months after the Brexit Referendum in June 2016.