MNI POLICY: BOE Carney To Stay To Jan 2020; Cunliffe New Term

By David Robinson

     LONDON (MNI) - Bank of England Governor Mark Carney will continue in his

post until the end of January 2020 and Deputy Governor Jon Cunliffe has been

given a new term lasting through to October 2023, Chancellor of the Exchequer

Philip Hammond revealed Tuesday.

     Hammond told Parliament that the UK was facing testing times as a result of

the Brexit process, and the re-appointments ensure continuity at the top of the

central bank.

     Carney had previously told the Treasury Select Committee that he was

willing to stay on at the Bank to help with consequences of Brexit, and Hammond

on Tuesday fleshed out the details.

     Carney has agreed to extend his stay by seven months, having previously

said that he would leave in June next year.

     "I recognise that during this critical period, it is important that

everyone does everything they can to support a smooth and successful Brexit ...

and I can confirm that I would be honoured to extend my term to January 2020,"

Carney said in a letter to Hammond.

     While Carney has attracted sharp criticism from pro-Brexit lawmakers

because of the Bank's assumption Brexit is economically damaging near-term, he

enjoys the support of Hammond, who himself  has repeatedly highlighted the risks

associated with Brexit.

     --SMOOTH BREXIT

     Hammond stated that keeping Carney in place was designed to "to support a

smooth exit of the United Kingdom from the European Union and an effective

transition to the next Governor."

     The Chancellor set out the timetable for the appointment of Carney's

successor -- who, if things go according to plan, will come in when at least

some of the Brexit uncertainty has decreased.

     The new governor will be appointed "during the Autumn next year after the

terms of the UK's withdrawal and the framework for the future partnership have

been finalised," Hammond said

     Cunliffe, the Deputy Governor for Financial Stability, was previously the

top civil servant in Brussels and his reappointment again ensures continuity in

dealing with EU counterparts.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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