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Carney to stay extra year at BoE

Tuesday, November 01, 2016 - 01:49

Sterling hit an almost two-week high on Tuesday, after Bank of England Governor Mark Carney said he would be staying on until 2019. Julian Satterthwaite reports.

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Bank of England governor Mark Carney ending the feverish speculation about his future. He says he will extend his term by a year until June 2019. In a letter to chancellor Philip Hammond, Carney says staying on will "contribute to securing an orderly transition to the UK's new relationship with Europe." SOUNDBITE (English) SIMON FRENCH, CHIEF ECONOMIST, PANMURE GORDON, SAYING: "I don't think it's a disappointment. I think Carney was very clear at the outset that he would commit to five years, with the potential of moving to what is much more standard for a governor to do a full eight-year term. But made it clear it was going to be a personal decision based on his own circumstances." Sterling got a boost on the news. Investors glad he won't be leaving midway through the Brexit talks. But critics had hoped Carney would quit sooner. They say he's too biased against Brexit. SOUNDBITE (English) SIMON FRENCH, CHIEF ECONOMIST, PANMURE GORDON, SAYING: "The vast majority of the profession, and this isn't advocating group think, but the vast majority of the profession saw a negative impact from Brexit. So for the bank to take that position as well, was not unusual and I don't think deserving of criticism." Carney says his decision was personal, not political. The Canadian wants his four children to go to school back home. SOUNDBITE (English) SIMON FRENCH, CHIEF ECONOMIST, PANMURE GORDON, SAYING: "He will have one eye on the political circumstances in Canada. And also the big global finance jobs - potentially the IMF, World Bank - that he might be in the frame at the end of what I think has been, thus far, a fairly successful tenure at the Bank of England." But supporters had hoped he would exercise an option to stay on until 2021. Now the danger is that Carney ends up satisfying no one. Leaving the bank too late for his critics. And too early for his fans.

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Carney to stay extra year at BoE

Tuesday, November 01, 2016 - 01:49