Bank of England governor Mark Carney to stay on extra year to 2019 for Brexit

Extra year: The governor will stay on until 2019.
PA
Francesca Gillett31 October 2016

The governor of the Bank of England Mark Carney is to stay on an extra year and step down in June 2019.

The bank boss had planned to only stay in the post for five years until 2018 but pressure was on put him from Downing Street following the fallout from Brexit.

Following a meeting with the Prime Minister today he announced he has agreed to stay on an extra year until Brexit negotiations with the EU had ended.

Prime Minister Theresa May and the chancellor, Philip Hammond, wanted him to serve a full eight-year term.

Mr Carney, who took up the role in 2013, was expected to announce his decision on Thursday in a press conference but news broke tonight after he held a meeting with Ms May.

The news comes as the pound became the world’s “worst performing currency” this month.

Sterling has taken a hit since Britain voted to leave the European Union with the pound falling more than six per cent against the dollar since the start of October.

In a letter to Mr Hammond, the governor said he had planned to leave the bank for personal reasons – but said he changed his mind because of Britain’s changed landscape following the EU vote, the Guardian reported.

He wrote: “Since then, my personal circumstances have not changed, but other circumstances clearly have, most notably the UK’s decision to leave the European Union.

“Recognising the importance to the country of continuity during the UK’s article 50 negotiations, and notwithstanding those personal circumstances, I would be honoured to extend my time of service as governor for an additional year to the end of June 2019.

“By taking my term in office beyond the expected period of the article 50 process, this should help contribute to securing an orderly transition to the UK’s new relationship with Europe.”

He added in his letter: "It is an honour and a privilege to serve in this important role. I deeply appreciate your support, that of the prime minister, and that of colleagues at the Bank, and look forward to continuing to promote the good of the people of the United Kingdom during this crucial time for the country.”

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