Bank governor Mark Carney to step down in 2019

PUBLISHED: 09:09 31 October 2016 | UPDATED: 18:11 31 October 2016

Bank of England governor Mark Carney. Picture: Dylan Martinez/PA Wire

Bank of England governor Mark Carney. Picture: Dylan Martinez/PA Wire

Bank of England Governor Mark Carney is ready to serve his full eight year term defying pro-Brexit campaigners demanding his resignation, it has been reported.

Bank of England governor Mark Carney said he will extend his term in office by one year to the end of June, 2019.

Speculation had been mounting throughout the day that Mr Carney would extend his five-year term, which had been due to end in 2018, for a further three years until 2021.

It led to Downing Street giving him its backing, saying that Theresa May regards him as “absolutely” the right man for the job.

The prime minister’s official spokeswoman had said that Mrs May was “supportive” of Mr Carney remaining at the Bank beyond his initial term.

It had been expected that the Canadian banker would announce he was ready to serve for a further three years, defying pro-Brexit campaigners demanding his resignation.

Mr Carney spoke to the prime minister at Downing Street today, though sources had said it was a routine engagement.

Mr Carney had faced mounting speculation that he was preparing to stand down early amid complaints that he went too far in warning of the economic dangers of leaving the EU in order to bolster Remain during the referendum campaign.

But the Financial Times reported that he has told friends he was likely to make a final decision this week after speaking with Mrs May and Chancellor Philip Hammond, and is “leaning strongly” towards remaining in his post.

When he took up the post in 2013, it was agreed that Mr Carney would serve an initial five-year term with the option of another three years.

Asked whether Mrs May wanted him to stay on, the PM’s official spokeswoman told a regular Westminster news briefing: “The Prime Minister has been clear in her support for the governor and the work he is doing for the country.

“It is clearly a decision for him but the PM would certainly be supportive of him going on beyond his five years.”

Pressed on whether Mrs May saw the governor as “the right man for the job”, the spokeswoman replied: “Absolutely.”

Mrs May’s spokeswoman declined to reveal whether the Prime Minister had spoken with the governor since reports that he might not stay on at Threadneedle Street emerged.

But leading pro-Brexit Tory MEP Daniel Hannan warned that if Mr Carney remains in his post he must stop acting like a “rock star”.

The MEP said Mr Carney would have to “comport” himself “as a quiet and discreet public servant who errs on the side of saying too little.

“It’s up to him, but if he does stay it’s got to be on the basis that he’s not the rock star banker who presumes to tell Scotland whether to stay in Britain, which way to vote. Rather, sticks narrowly to his brief,” Mr Hannan told the BBC Radio 4 Today programme.

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