Bank of England’s Carney agrees to extend term as governor to 2020
LONDON 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.
The announcement from the government and the bank was expected after Carney told lawmakers last week that he was “willing ” to extend his tenure beyond his scheduled June 2019 departure.
Britain is due to leave the EU in March 2019 but there is uncertainty as to how it will leave. 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.
“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 and I can confirm that I would be honoured to extend my term to January 2020,” Carney said in a letter to the Chancellor of the Exchequer.
Carney is reportedly interested in entering politics back home in Canada but the extension effectively wipes out any chance of him running in the next federal election, which has to be held by October 2019.
He won plaudits for helping to calm financial markets in the wake of Britain’s vote in June 2016 to leave the EU.
Backers of Brexit, however, have accused Carney of taking sides during the Brexit referendum campaign, of being a leading proponent of so-called “Project Fear” when warning of the economic consequences of a vote to leave.
Carney became in July 2013 the first non-briton to take the top job at the Bank of England for an initial five-year term. He extended it by a further year in the aftermath of the Brexit vote.