BoE governor Carney eyes exit: Report

Media speculation mounted yesterday that the governor of the Bank of England, Mark Carney, is set to announce his departure amid tensions with Prime Minister Theresa May’s new government. The Canadian is on a five-year contract that expires in 2018 but has an option to extend the job until 2021, a decision the central bank has said will be made public by the end of this year. Media reports suggest Carney will not take up the option to stay on, with the Sunday Times newspaper saying he was “disillusioned” with May’s Conservative government.

Carney has been criticized by eurosceptic Conservatives for his warnings of the economic impact of Brexit before the June referendum vote to leave the European Union.

In her speech to her party conference earlier his month, May also appeared to criticise the bank’s policy, saying quantitative easing and low interest rates hurt savers. Carney told a parliamentary committee on Tuesday that any decision would be “entirely personal”.

“No one should read anything into that decision in terms of government policy,” he said. The job was “an absolute privilege”, he said, but added: “Like everyone I have personal circumstances that I have to manage. “This is a role that requires total attention, devotion, and I intend to give it for as long as I can. Those are the only factors.”

A bank spokesman declined to comment on the speculation, or on reports that Carney may announce his decision as soon as Thursday. Business Secretary Greg Clark told the BBC yesterday that Carney’s future at the bank was “a decision for him” but said he had done a “fantastic job”. — AFP