The Malaysian Reserve

Carney’s future returns to spotlight amid no-deal Brexit talk

By BLOOMBERG

LONDON • The UK Treasury is said to have approached Bank of England (BoE) governor Mark Carney about staying in his role for another year to help the country through Brexit, according to the Evening Standard newspaper.

A Treasury spokeswoman denied the story, saying it doesn’t recognise the reporting. A BoE spokesman declined to comment.

Nevertheless, the speculation about Carney’s future belies the unease in Prime Minister Theresa May’s government as talk of a no-deal Brexit gets louder. May herself said this week that leaving the European Union (EU) without a transition deal in place “wouldn’t be the end of the world”, pushing down the pound.

Carney has already extended his tenure at the central bank to the end of June 2019 to provide continuity through the Brexit negotiations. When he started at the BoE in 2013, he planned to stay for only five years, but four months after Britain’s decision to leave the EU, he announced his decision to stay on to help with an “orderly transition”.

Asked in a Bloomberg interview in July if he’d extend it again, Carney, 53, said “nothing’s changed” about his plans. The newspaper didn’t say where it got the information.

The BoE governor is appointed by the UK Chancellor of the Exchequer. Philip Hammond, currently in that role, so far hadn’t said who he might be considering to succeed Carney and the application process hasn’t formally started.

Earlier this month the Press Association reported that the Treasury was writing the job post ing and probably planned to post it by the end of September.

Carney was appointed to the role in late 2012 after previously saying he wasn’t interested in the job, and then there were questions over the duration, with Carney initially agreeing to serve five years of what is usually an eight-year term.

He also faced calls by some lawmakers for his resignation over his comments about the Brexit vote.

After the BoE’s August interest- rate decision at which policymakers raised the benchmark to the highest since 2009, Carney said that the risk of the UK leaving the EU without a deal was “uncomfortably high”.LONDON • The UK Treasury is said to have approached Bank of England (BoE) governor Mark Carney about staying in his role for another year to help the country through Brexit, according to the Evening Standard newspaper.

A Treasury spokeswoman denied the story, saying it doesn’t recognise the reporting. A BoE spokesman declined to comment.

Nevertheless, the speculation about Carney’s future belies the unease in Prime Minister Theresa May’s government as talk of a no-deal Brexit gets louder. May herself said this week that leaving the European Union (EU) without a transition deal in place “wouldn’t be the end of the world”, pushing down the pound.

Carney has already extended his tenure at the central bank to the end of June 2019 to provide continuity through the Brexit negotiations. When he started at the BoE in 2013, he planned to stay for only five years, but four months after Britain’s decision to leave the EU, he announced his decision to stay on to help with an “orderly transition”.

Asked in a Bloomberg interview in July if he’d extend it again, Carney, 53, said “nothing’s changed” about his plans. The newspaper didn’t say where it got the information.

The BoE governor is appointed by the UK Chancellor of the Exchequer. Philip Hammond, currently in that role, so far hadn’t said who he might be considering to succeed Carney and the application process hasn’t formally started.

Earlier this month the Press Association reported that the Treasury was writing the job post ing and probably planned to post it by the end of September.

Carney was appointed to the role in late 2012 after previously saying he wasn’t interested in the job, and then there were questions over the duration, with Carney initially agreeing to serve five years of what is usually an eight-year term.

He also faced calls by some lawmakers for his resignation over his comments about the Brexit vote.

After the BoE’s August interest- rate decision at which policymakers raised the benchmark to the highest since 2009, Carney said that the risk of the UK leaving the EU without a deal was “uncomfortably high”.