Carney to head BoE until 2020

Carney to head BoE until 2020

Mubasher: Bank of England (BoE) Governor Mark Carney, who was due to step down in June next year, extended his term for further seven months.

The Canadian economist will stay now until January 2020, the Treasury announced on Tuesday, confirming widespread speculations that the governor would extend his stay.

"I'm delighted that the Governor has agreed to stay in his role for a further seven months to support a smooth exit from the European Union [EU] and provide vital stability for our economy," Chancellor Philip Hammond said in a statement.

Carney stated last week that he was willing to serve as the head of the UK's central bank for an extended period.

Carney succeeded Mervyn King as BoE governor in 2013, initially committing to a five-year term although the traditional protocol stipulates an eight-year term for a governor.

However, following the vote on the UK departure from the EU, also known as the Brexit, he committed to an additional year, citing “the importance to the country of continuity during the UK's Article 50 negotiations.”

Recongising the importance of “[supporting] a smooth and successful 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 said in a letter to Chancellor Hammond.

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Source: Mubasher