Bank of England Governor Carney to stay through June 2019

[webfact]

Bank of England Governor Carney to stay through June 2019 
GREGORY KATZ, Associated Press

 

LONDON (AP) — Bank of England Governor Mark Carney announced Monday that he will extend his term in office by one year and stay in the position through June 2019, a decision that may help settle speculation about his future guiding Britain's monetary policy.

 

In a letter to Treasury chief Philip Hammond, Carney said he was staying an extra year because he recognized "the importance to the country of continuity" during the U.K.'s negotiations to leave European Union.

 

Carney has played a key role in trying to manage the British economy and stave off a possible recession as the country prepares to exit the 28-nation bloc.

 

He announced plans to stay in his Bank of England post longer than his initial five-year commitment, but said he does not plan to serve a full eight-year term.

 

"I believed that five years would allow a reasonable timeframe to remodel the Bank to reflect its new, much broader responsibilities, and to complete the most important elements of the domestic financial reform agenda," Carney said.

 

"Since then, my personal circumstances have not changed, but other circumstances clearly have, most notably the U.K.'s decision to leave the European Union," he wrote.

 

The British government had earlier in the day offered strong support for Carney amid speculation about his future at the bank.

 

Theresa May's spokeswoman said Monday that Carney, a Canadian who took office in 2013, had the prime minister's full backing.

 

May has said she plans to trigger formal negotiations to leave the EU by the end of March 2017. If those negotiations take two years, the time frame spelled out in the bloc's treaty, Carney would helm the Bank of England throughout the delicate talks.

 

Many of those who campaigned for Britain to leave the European Union have taken issue with Carney because of his stark pre-vote warnings about the potential negative economic impact of Britain's exit, or Brexit.

 

Despite economic warnings from Carney and other senior figures, Britons voted in a June referendum to part ways with the EU.

 

-- © Associated Press 2016-11-01

[Laughing Gravy]

I suppose that this might have some positive impact on the markets and stability for the next few months. As a supposedly independent from politics, he got caught up in the remain campaign, which has since come to bite him on the bottom.

[SaintLouisBlues]

3 minutes ago, Laughing Gravy said:

... to bite him on the bottom.

I blame all those boarding school boys. The late English author Evelyn Waugh used to take guys to lunch in a crowded restaurant and ask in a loud voice "Was there much sodomy at your school?"

[Laughing Gravy]

Just now, SaintLouisBlues said:

I blame all those boarding school boys. The late English author Evelyn Waugh used to take guys to lunch in a crowded restaurant and ask in a loud voice "Was there much sodomy at your school?"

It was an metaphor. Don't get all hot under the collar.

[SaintLouisBlues]

Just now, Laughing Gravy said:

It was an metaphor.

No!! You don't say!!! Who'da thought 

[i claudius]

He is supposed to be impartial , but was not , he should go , it was a disaster for the pound when he cut interest rates .

[SaintLouisBlues]

9 minutes ago, i claudius said:

it was a disaster for the pound when he cut interest rates .

That's one of the points about cutting interest rates. If you cut the return on an asset you lower the price of that asset vis a vis other assets. Standard central bank procedure. He dropped interest rates because, among other things, there was a perception that the domestic economy needed a confidence boost. It's not your hip pocket talking by any chance?

[Grouse]

57 minutes ago, i claudius said:

He is supposed to be impartial , but was not , he should go , it was a disaster for the pound when he cut interest rates .

Sod the economy. Who cares about avoiding recession. 

 

I for one am happy he's staying. If ever there was a time when we needed a safe pair of hands, it's now.

[Prbkk]

So: he wants to leave, the govt wants him gone. But he's there for another 3 years with limited credibility and his wonderkid reputation in tatters. No winners in this decision.

[SheungWan]

4 hours ago, Grouse said:

Sod the economy. Who cares about avoiding recession. 

 

I for one am happy he's staying. If ever there was a time when we needed a safe pair of hands, it's now.

 

1 hour ago, Prbkk said:

So: he wants to leave, the govt wants him gone. But he's there for another 3 years with limited credibility and his wonderkid reputation in tatters. No winners in this decision.

 

Its one or the other, but not both.

[elgordo38]

6 hours ago, i claudius said:

He is supposed to be impartial , but was not , he should go , it was a disaster for the pound when he cut interest rates .

Not so fast that extra time will really goose his pension. I think this is pension number 2 as he no doubt received a pension after he quite the Bank of Canada as head honcho. He is just getting started by the time retirement rolls around he should have quite a few more pension scalps in his medicine bag.