Bank of England’s Carney extends term at helm to January 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 next March, but there is uncertainty as to how it will leave. The extension is shorter than expected, but it helps 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, former governor of the Bank of Canada, said in a statement. Carney, who is reportedly interested in entering politics in Canada, 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 by being a leading proponent of “Project Fear” when warning of the economic consequences of a vote to leave.
British Treasury chief Philip Hammond, following discussions with Prime Minister Theresa May, appears to have approved of Carney’s performance so far.
Hammond told the House of Lords economic affairs committee that the British economy, in particular financial services firms, could expect turbulence if the country crashes out of the EU in March without a deal.
Carney became governor 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 after the Brexit vote.