Bank of England’s Mark Carney extends term to early 2020

Gladys Abbott
September 14, 2018

Mark Carney is set to continue as the governor of the Bank of England until the end of January 2020 to support a smooth Brexit and transition, UK Chancellor Philip Hammond confirmed Tuesday.

The seven-month extension was agreed in an exchange of letters between the Governor and the Chancellor, the Treasury said in a statement. With the March Brexit deadline looming, the UK's future relationship with the European Union remains unclear, while Prime Minister Theresa May's current plan is proving unpopular with lawmakers both at home and overseas.

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.

Labour MP Virendra Sharma, a champion of the anti-Brexit campaign group Better for Britain, said Carney's willingness to stay through the turbulence "shows the problems that the government are having on Brexit".

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Hammond also said that Carney would provide "vital stability" for Britain's economy during the Brexit transition. "I certainly can't make announcements on behalf of the government but I'll do whatever I can to support this process".

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".

Carney, who is Canadian and is reportedly interested in entering politics back home, won plaudits for helping to calm financial markets in the wake of Britain's vote in June 2016 to leave the EU.

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.

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