Bank of England Governor may stay beyond 2018

31st October 2016

Bank of England Governor, Mark Carney, looks increasingly likely to extend his term at the Bank of England beyond 2018.

There has been growing speculation that Carney was preparing to announce his departure at the end of his initial five-year term, but the Financial Times has since reported that he is leaning towards staying on and overseeing the fall-out of the EU referendum.

Carney is expected to make a statement on his future at the Bank of England this week to put a stop to any unwanted speculation within the Treasury. Mr Carney will be holding a news conference following the publication of the Bank’s Quarterly Inflation Report and the announcement of the result of the Bank’s latest interest rate meeting.

Quoting friends of Mr Carney, the Financial Times reported that he is determined to defend the Bank of England’s independence. Writing for the Daily Telegraph, Gerard Lyons, former adviser to Boris Johnson, said Carney should remain as Governor but “has to be fully committed to ensuring the [outcome of the EU referendum] is a success”.

Philip Shaw of Investec, said: “Uncertainties have risen since the [EU referendum] vote… keeping Carney at the helm for a further three years is the sort of continuity that should be welcomed”.

Meanwhile, Iain Duncan Smith, the former Work and Pensions Secretary, remains unsure whether Carney staying on would be such a good idea for the national economy.

“If you compare him to his predecessors his record of such is not as good. The jury is out. I have to say that he has not proved to be a great success,” said Duncan Smith.

Image: Bank of England

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