Carney set to stay as BoE governor beyond 2020

05-Sep-18


Bank of England governor Mark Carney is expected to extend his stint in the top seat until beyond 2020 after prime minister Theresa May backed an extension of his tenure.

Carney told MPs that he would be willing to stay on as governor of the BoE beyond his originally planned exit in June 2019 to help navigate the country through the Brexit process.

Chancellor Philip Hammond is expected to confirm the extension in the coming days.  

Carney told MPs earlier this week: ‘Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and effective transition at the Bank of England. The chancellor and I have discussed this. I would expect an announcement to be made in due course.’

The continuity at the top of the BoE has been welcomed by the industry.

Quilter Investors head of investment Anthony Gillham said: ‘If Mark Carney’s tenure is extended he will have his work cut out, but the case for an experienced captain to guide the UK through dangerous waters has grown stronger as Brexit negotiations have dragged on. He will install a measure of certainty on monetary policy, which provides some air cover through what will surely be an unpredictable spell.

‘As Bank of England governor Mark Carney hasn’t always been universally popular, but appointing him as temporary caretaker through this period of transition does make sense.’

Kames Capital fixed income manager James Lynch added: ‘Mark Carney has said: “the government has a lot on its plate”. The same can also be said for UK investors, at least a change at the top of the Bank of England is one less thing to worry about.’