Mark Carney will lead Bank of England through Brexit

Marco Green
September 13, 2018

In a letter to the governor, Philip Hammond said that the extension would "support a smooth exit of the United Kingdom from the European Union and an effective transition to the next governor", bringing the curtain down on a chaotic few weeks of guesswork and speculation.

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". The extension was agreed in an exchange of letters between the Governor and the Chancellor published this morning.

Mr Carney had been due to step down from the role at the end of June 2019 - two years short of the eight-year term governors usually serve.

After weeks of speculation, the governor of the Bank of England Mark Carney has said he will be officially staying on as governor for an extended term of 7 months until January 2020.

"I recognize that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit", Carney said in a letter to United Kingdom treasury chief Philip Hammond.

However, Mr Carney confirmed last week that he was in talks with the Treasury over extending his tenure, saying he pledged to do "whatever he can to support the United Kingdom through Brexit".

British Treasury chief Philip Hammond, following discussions with Prime Minister Theresa May, appears to have approved of Carney's performance so far.

"I think a governor who is leaving at the end of June with his bags already packed would be in a poor situation to represent the U.K.in what might be some critical and time-critical negotiations over that period, trying to find practical solutions to situations that might arise", Hammond said.

"It is a privilege to serve as governor at the Bank and I look forward to continuing to work with my exceptional colleagues at the bank as we promote the good of the people of the United Kingdom by maintaining monetary and financial stability".

Should Brexit go smoothly and United Kingdom economic activity pick up steam in 2019 a Carney-led Bank of England would nearly certainly accelerate the pace of interest rate rises as per recent guidance.

Other reports by Click Lancashire

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