The Strategist

Carney stays with the Bank of England to help through Brexit

09/11/2018 - 16:04

Chairman of the Bank of England Mark Carney will remain at the lead of the Central Bank for six months longer than the previously set deadline, and will retire at the end of January 2020, according to the Bank’s press release.

Bank of England via flickr
Bank of England via flickr
According to the rules, Carney's term expires at the end of June 2019, but he will remain in office to ensure a smooth exit of the country from the EU.

"In this crucial period, it is important that everyone does everything possible to make Brexit smooth and successful," Carney said in response to a request from UK Finance Minister Philip Hammond. "I confirm that I will consider it an honor to extend my term of office until January 2020."

Earlier, the head of the Bank of England confirmed that he was negotiating to extend the term, but at that time he refused to disclose details.

Also, the Treasury Department announced reassignment of Jon Cunliffe as the Bank of England's Deputy Governor for Financial Stability for a new five-year term.

Traditionally, the British Ministry of Finance publishes an announcement on the future vacancy a year in advance, during July. Yet, it appeared only in September before Carney's appointment of Karni (in 2012). This time there was no announcement in July, and the markets started a lively discussion of possible reasons for which appointment of the head of the Bank of England is postponed. After a publication in the Evening Standard, the Ministry of Finance noted that this year the terms of publication of the announcement will be comparable to 2012.

Carney led the Bank of England in July 2013. He is the 120th governor of the British Central Bank and the first foreigner in this position. The 53-year-old economist previously worked at Goldman Sachs, the Canadian Ministry of Finance and the Bank of Canada. Since 2011, he has been Chairman of the International Financial Stability Board (FSB).

Usually the term of office of the Governor of the Bank of England is eight years. However, in the fall of 2012, the UK Minister of Finance informed the parliament that Carney intends to work for just five years and resign in June 2018. In 2016, the Canadian promised to stay for another year, until the end of June 2019, due to Brexit. In June and July this year, he negatively answered questions about whether another such extension is possible.

The Carney family returned to Canada in the summer of 2018.


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