Published: Fri, September 14, 2018
Markets | By Otis Pena

Carney to remain in his role until January 2020

Carney to remain in his role until January 2020

The Chancellor had cited a desire to keep carney at the helm so as to help ensure a smooth Brexit from the European Union.

"That Mark Carney wants to stay should worry everyone, but the shocks facing the economy could be deeply damaging - jobs and our prosperity are at risk".

Speaking in parliament, chancellor Hammond said that he wanted to extend Carney's stay in order, "to ensure continuity during what could be quite a turbulent period for our economy in the early summer of 2019".

Chancellor Philip Hammond announced the news on Tuesday, saying Mr Carney had agreed to the extension "despite various personal pressures".

Hammond has also revealed that deputy governor Sir John Cunliffe has been re-appointed to his role.

Carney, who was due to step down in June next year, will now stay on as governor until January 2020, the Treasury said.

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The United Kingdom will leave the European Union on March 29 but as yet no full exit deal has been agreed and many lawmakers in Prime Minister Theresa May's own party object to her own so-called Chequers proposals.

Speculation had been rife that Carney would extend his term, and last week the Canadian confirmed he would be willing to serve for an extended period.

"I am willing to do whatever I can in order to promote both a smooth Brexit and an effective transition at the BoE".

The decision also raises questions about the government's grasp of the Brexit process if Carney's presence is needed to ensure stability, or the United Kingdom treasury is struggling to find a replacement while it focuses on negotiations. He was seen as a key source of financial stability in the political power vacuum that followed the Brexit vote, but also drew the ire of pro-Brexit lawmakers who believe he waded too far into the political debate.

Carney took over from Mervyn King as Bank of England governor in 2013, initially committing to a five-year term despite traditional protocol dictating an eight-year term as governor.

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