Speculation grows on Carney’s future

THE City is awaiting Mark Carney’s decision on whether he will stay on at the Bank of England as speculation mounted yesterday about his future.

The Canadian will announce by the end of the year whether he will continue as the Bank’s governor beyond 2018, but there have been suggestions he might make a statement as soon as Thursday, when he delivers his quarterly inflation report.

Mr Carney suggested during an appearance before a House of Lords committee this week that he was still weighing it up, saying it was a “personal” decision.

Sources indicated last night that Mr Carney remained undecided and was likely to be influenced by personal rather than political factors.

It is understood that while it was not impossible he could reveal his decision on Thursday, it was more likely an announcement would come next month.

The governor has become a target for Eurosceptics, who have called on him to resign because of the warnings he gave about the impact of Brexit on the economy. Former Tory chancellors such as Lord Lawson are among those who were enraged by Mr Carney’s approach to the EU referendum.

Last night, Daniel Hannan MEP, a prominent Brexiteer, called for Mr Carney to resign, suggesting he had “politicised his office inexcusably”.

The strength of Mr Carney’s relationship with Theresa May has also been questioned in recent months after she appeared to criticise him when addressing the Tory conference.

The Prime Minister said that the Bank’s policy of printing money had hurt savers – comments that made headlines and forced both sides to play down the row. However, Mr Carney subsequently made a speech saying he would not “take instruction” from politicians.

Mr Carney became governor in July 2013 in an unusual arrangement that gave a five-year term with the option of another three years. There had been reports he was interested in a domestic political career in Canada, using the arrangement to cut short his stint in Britain if the timings suited.

Speaking before Parliament’s Economic Affairs Committee this week, Mr Carney said it was an “entirely personal decision” when asked about his future. He said: “Like everyone, I have personal circumstances which 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. No one should read anything into that decision about government policy.”

Mr Carney was brought to Britain with the support of George Osborne, then chancellor.

Asked about speculation on the timing of Mr Carney’s decision, a spokesman for the Bank of England said: “Nothing has changed. The governor has said he will make his decision public by the end of the year.”