BoE governor to stay until June 2019

Bank of England governor Mark Carney has pledged to extend his term in office by one year, defying pro-Brexit campaigners calling for his resignation.

Mr Carney said he would stay in post until the end of June 2019, but has opted against serving a full eight-year term.

The decision means he will cover the full two-year period of Britain’s Brexit negotiations, if Prime Minister Theresa May stands by her pledge to trigger Article 50 by the end of March next year.

In a letter to Chancellor Philip Hammond, Mr Carney said: “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.”

Mr Carney said he had taken the decision because he recognised “the importance of continuity during the UK’s Article 50 negotiations”.

The pound held steady against the US dollar and the euro immediately after the announcement, with sterling up 0.3% against the US dollar at 1.223 and 0.2% against the euro at 1.114.

Mr Carney had faced mounting speculation that he was preparing to stand down early amid complaints he went too far in warning of the economic dangers of leaving the EU in order to bolster Remain in the referendum campaign.

When he took up the post in 2013, it was agreed that Mr Carney would serve an initial five-year term with the option of another three years.

Mr Hammond said he was “very pleased” that Mr Carney was to serve until the end of June 2019.

Mr Carney had met with Mrs May at 10 Downing Street earlier in the day as speculation mounted over the governor’s future.

A spokesman at Number 10 said: “This is good news for the UK. It will provide continuity and stability at the Bank of England as we negotiate our exit from the European Union and look to take advantage of the opportunities that Brexit will present.”

Leading pro-Brexit Tory MEP Daniel Hannan warned that if Mr Carney remains in his post he must stop acting like a “rock star”.

Picture: PA. Mark Carney: staying in post until the end of June 2019.