| 15.7°C Belfast

Treasury plays down reports Government asked Carney to stay at Bank of England

The Canadian is set to step down next year after six years in the role.


Mark Carney is the Governor of the Bank of England (PA)

Mark Carney is the Governor of the Bank of England (PA)

Mark Carney is the Governor of the Bank of England (PA)

The Treasury has played down reports suggesting that Mark Carney is being asked to remain as Bank of England Governor until 2020.

The Canadian is currently due to stay on until June 2019, ending six years as head of the UK’s central bank.

But the Evening Standard has suggested the Government quietly approached Mr Carney to remain in his post for another year as it struggles to find a strong enough candidate to replace him.

However, Treasury sources said the department does not recognise the London newspaper’s report and expects to start hunting for a successor in the coming months.

A Treasury spokesman said: “We will begin recruitment for the next Governor of the Bank of England in due course.”

The Bank of England declined to comment.

The Press Association reported earlier this month that Chancellor Philip Hammond’s team was working on the final wording of the job description for Mr Carney’s post, which is expected to demand an in-depth understanding of Britain’s economic predicament in light of Brexit.

The advert is expected to be posted by the end of September, though a firm date has yet to be set.

Mr Carney announced in late 2016 that he would stay in his role until the end of June 2019, opting against a full eight-year term.

It means he will stay on for three months after Britain formally leaves the European Union in March next year, leaving his successor to navigate the aftermath of the EU divorce.

The Governor plays a key role in setting monetary policy and regulation, and serves as chairman of the interest rate-setting Monetary Policy Committee, the Financial Policy Committee and the Prudential Regulation Committee.


The Bank of England (PA)

The Bank of England (PA)

PA Wire/PA Images

The Bank of England (PA)

Among the rumoured contenders are Financial Conduct Authority chief executive Andrew Bailey, as well as Minouche Shafik – a London School of Economics director and former Bank of England deputy governor.

Former Reserve Bank of India governor Raghuram Rajan and Ofcom chief executive Sharon White have also been listed as possible candidates, with the latter having previously served as second permanent secretary at the Treasury and a senior economist at the World Bank.

Deputy governor Ben Broadbent is still seen as a prospect, despite having been forced to apologise earlier this year after controversially describing the UK economy as “menopausal”.

Whoever follows in Mr Carney’s footsteps will be scrutinised for how they navigate the post-Brexit landscape and whether the gradual upward move for interest rates will be maintained.

The outgoing Governor controversially cut rates to historic lows of 0.25% in August 2016 and launched further monetary stimulus to help stave off an economic slump in the wake of the Brexit vote.

But with some signs of economic recovery afoot, the Bank’s interest rate setting Monetary Policy Committee earlier this month raised interest rates to 0.75%, their highest level in a decade.

The Bank is currently forecasting that the UK economy will grow by 1.8% in 2019 and 1.7% in 2020.

Mr Carney became the Bank’s Governor in 2013, succeeding Mervyn King and becoming the first non-Briton to hold the post.

He previously served as governor of the Bank of Canada from 2008 and was widely credited with helping the Canadian economy withstand the shock of the financial crisis.

It followed a stint in the Canadian government, having been senior associate deputy minister of finance and served both Liberal and Conservative administrations, all of which came after a 13-year career with Goldman Sachs.

Daily Headlines & Evening Telegraph Newsletter

Receive today's headlines directly to your inbox every morning and evening, with our free daily newsletter.

This field is required

Top Videos