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

MNI (London)
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.
     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:
[TOPICS: M$B$$$,M$E$$$,M$$BE$,MGB$$$]
MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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