BoE chief Car­ney to stay un­til 2019

The Myanmar Times - - International Business -

BANK of Eng­land gov­er­nor Mark Car­ney put an end to spec­u­la­tion over his fu­ture by an­nounc­ing he would ex­tend his con­tract for one year to 2019 to help se­cure an “or­derly tran­si­tion” to Brexit.

The Cana­dian will not take up his op­tion to leave in 2018, but at the same time has de­clined to serve the full eight-year term that would have seen him stay on at the Bri­tish cen­tral bank un­til 2021.

“I would be hon­oured to ex­tend my time of ser­vice as gov­er­nor for an ad­di­tional year to the end of June 2019,” he wrote in a let­ter to fi­nance min­is­ter Philip Ham­mond.

“By tak­ing my term in of­fice beyond the ex­pected pe­riod of the Ar­ti­cle 50 process, this should help con­trib­ute to se­cur­ing an or­derly tran­si­tion to the UK’s new re­la­tion­ship with Europe.”

Prime Min­is­ter Theresa May is ex­pected to trig­ger Ar­ti­cle 50 of the EU’s Lis­bon Treaty by the end of March, start­ing a two-year exit process that would see Britain leave the Euro­pean Union by early 2019.

Mr Car­ney has been strongly crit­i­cised by mem­bers of Ms May’s Con­ser­va­tive party over his warn­ings about the im­pact of Brexit be­fore the June ref­er­en­dum, while there was spec­u­la­tion about ten­sions with the gov­ern­ment over pol­icy.

An­drew Tyrie, chair of the House of Com­mons Trea­sury com­mit­tee, wel­comed the “much needed clar­i­fi­ca­tion”, say­ing, “The less un­cer­tainty the bet­ter.”

How­ever, Mr Tyrie said it went against the agreed timetable of eight years, adding: “The de­ci­sion re­quires a good deal of ex­am­i­na­tion and ex­pla­na­tion.”

Af­ter the an­nounce­ment, a spokesper­son said, “The prime min­is­ter wel­comes the gov­er­nor’s de­ci­sion to stay on beyond his ini­tial five-year term. This is good news for the UK.” –

Photo: AFP

Mark Car­ney plans to over­see an or­derly tran­si­tion.

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