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Markets to be calmed by decision

Carney to serve Bank until Brexit talks conclude

Mark CarneyBank of England governor Mark Carney has committed himself to serve for six years, rather than the eight that was hinted yesterday.

He will stay on until June 2019 which will see him see the job through the Brexit negotiations.

Canadian Mr Carney, the first foreigner to hold the post, signed up for five years when he joined in 2013, rejecting the government’s hopes that would stay for eight.

His intention to stay on for longer than planned will remove a cloud of uncertainty and should also help underpin sterling which was the most likely victim of an early exit by the governor.

While he has been seen as a steadying pair of hands, he has come in for criticism, particularly over his warnings immediately after the EU referendum.

His prognosis now seems to have been overly pessimistic and may have contributed to the sharp plunge in the markets in the days which followed.

Others welcomed his warnings, arguing that he was right to spell out the implications of the EU vote.

Amid reports that the Cabinet is divided on Mr Carney’s performance, Business Secretary Greg Clark said he has done a “tremendous job” as governor.

During an appearance before MPs in July Mr Carney was forced to deny that the Bank of England had tried to “frighten” the public about the negative effect a Brexit vote.

Prime Minister Theresa May has been critical of the Bank’s stimulus scheme for the UK economy.

The Bank of England’s monetary policy committee is expected to hold interest rates this week against earlier expectations of a further cut from 0.25% to possibly 0.1%.

While the markets will welcome some greater certainty around the Bank of England, the growing controversy surrounding the FBI investigation into US presidential candidate Hillary Clinton’s emails has dented her lead and caused some jitters among traders.

 

 

 



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