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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/oct/31/mark-carney-bank-of-england-speculation-eurozone-gdp-business-live
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| Theresa May welcomes Mark Carney's decision to stay at the Bank of England in 2019 – business live | |
| (35 minutes later) | |
| 7.18pm GMT | |
| 19:18 | |
| An interesting reaction from Rupert Harrison of BlackRock, the asset manager. | |
| In classic Carney style, by choosing 6 years he has managed to ensure that he was right and everyone else was wrong | |
| Harrison is a former advisor to George Osborne, who appointed Carney in the first place. | |
| 7.09pm GMT | |
| 19:09 | |
| May: Carney's decision is good news for UK | |
| British prime minister Theresa May has welcomes Mark Carney’s decision to extend his term at the Bank of England by one year. | |
| May’s spokeswoman says (via Reuters). | |
| “The prime minister welcomes the governor’s decision to stay on beyond his initial five-year term. | |
| This is good news for the UK. It will provide continuity and stability at the Bank of England as we negotiate our exit from the European Union and look to take advantage of the opportunities that Brexit will present.” | |
| However, there’s no word on whether May would rather Carney had stayed until 2021. | |
| Updated | |
| at 7.10pm GMT | |
| 7.05pm GMT | |
| 19:05 | |
| Zing! | |
| Congratulations to Mark Carney for finally delivering a piece of forward guidance that the markets can understand. | |
| 7.04pm GMT | |
| 19:04 | |
| Tyrie: Carney has a lot of explaining to do.... | |
| Andrew Tyrie, the influential chair of parliament’s Treasury Committee, is determined to find out why Mark Carney is only going to serve a six year term. | |
| And he’s promising to ask the governor a lot of searching questions when they next face each other.... | |
| The much needed clarification is welcome. The less uncertainty the better. Still, the Treasury Committee concluded in November 2011 that a non-renewable term of 8 years for the post of Governor was appropriate. The Government agreed, and changed the law in the Financial Services Act 2012, in line with the recommendation. | |
| In making this announcement, the Government and the Governor are sticking neither to the timetable set out in the exchange of letters, nor returning to the statute. More uncertainty needs to be avoided. So the decision requires a good deal of examination and explanation, which the Committee will seek when it next sees the Governor in a fortnight. | |
| Updated | |
| at 7.05pm GMT | |
| 6.59pm GMT | |
| 18:59 | |
| The CBI’s principal economist, Alpesh Paleja, says Carney has given us a Halloween treat: | |
| Trick or treat? Mark #Carney to stay on until June 2019 (it's a treat, in case you're wondering). | |
| 6.57pm GMT | |
| 18:57 | |
| Sorrell: Carney may be hurt by unjustified criticism | |
| Sir Martin Sorrell, head of advertising giant WPP, is disappointed that Carney won’t stay on until 2021. | |
| Sorrell told Sky News that “one year is better than nothing... but it’s disappointing that he won’t serve its full term.” | |
| “Maybe he was a little bit bruised by the criticism, I think unjustified criticism, that he’s been subjected to,” Sorrell said. | |
| Sorrell also warned that it will be “touch and go” as to whether the UK has finished the Brexit negotiations by June 2019. | |
| Updated | |
| at 7.02pm GMT | |
| 6.44pm GMT | 6.44pm GMT |
| 18:44 | 18:44 |
| Chris Chapman, a London-based trader at Manulife Asset Management, has told Bloomberg that the City ought to welcome Carney’s decision: | Chris Chapman, a London-based trader at Manulife Asset Management, has told Bloomberg that the City ought to welcome Carney’s decision: |
| “Carney is a respected central banker and overall I’d say that him staying with the BOE until 2019 would be seen as a positive for the country, but again, near term there are so many other factors weighing on the pound. | “Carney is a respected central banker and overall I’d say that him staying with the BOE until 2019 would be seen as a positive for the country, but again, near term there are so many other factors weighing on the pound. |
| Pound Stays Higher as Carney Says He’ll Remain at BOE Until 2019 https://t.co/PLegImIE2m via @anoojad @worrachate pic.twitter.com/4A71rZxM07 | Pound Stays Higher as Carney Says He’ll Remain at BOE Until 2019 https://t.co/PLegImIE2m via @anoojad @worrachate pic.twitter.com/4A71rZxM07 |
| 6.37pm GMT | 6.37pm GMT |
| 18:37 | 18:37 |
| Grant Lewis, head of research at Daiwa Capital Markets, tweets that Mark Carney is doing Britain a favour: | Grant Lewis, head of research at Daiwa Capital Markets, tweets that Mark Carney is doing Britain a favour: |
| Feels like Carney has been persuaded to do a favour for his Queen and someone else's country | Feels like Carney has been persuaded to do a favour for his Queen and someone else's country |
| While James Mackintosh of the Wall Street Journal says Carney’s departure is well-timed. | While James Mackintosh of the Wall Street Journal says Carney’s departure is well-timed. |
| Carney smart. He's leaving in 2019, before Brexit actually takes effect. He's cleaned up one too many crises already. | Carney smart. He's leaving in 2019, before Brexit actually takes effect. He's cleaned up one too many crises already. |
| 6.33pm GMT | 6.33pm GMT |
| 18:33 | 18:33 |
| Pound strengthens after Carney announcement | Pound strengthens after Carney announcement |
| Sterling has rallied a little following Mark Carney’s announcement. | Sterling has rallied a little following Mark Carney’s announcement. |
| The pound is up half a cent against the US dollar at $1.224. | The pound is up half a cent against the US dollar at $1.224. |
| It’s up a similar amount against the euro, at €1.115. | It’s up a similar amount against the euro, at €1.115. |
| Little sterling pop from #Carney news. | Little sterling pop from #Carney news. |
| These are small gains, but not enough to stop sterling being the worst-performing major currency this month [it lost 6% in October, after Theresa May announced she would trigger article 50 by March 2017, and prioritise migration control] | These are small gains, but not enough to stop sterling being the worst-performing major currency this month [it lost 6% in October, after Theresa May announced she would trigger article 50 by March 2017, and prioritise migration control] |
| Updated | Updated |
| at 6.35pm GMT | at 6.35pm GMT |
| 6.25pm GMT | 6.25pm GMT |
| 18:25 | 18:25 |
| Ed Conway is two steps ahead of us in the game of fantasy central bank governors: | Ed Conway is two steps ahead of us in the game of fantasy central bank governors: |
| Mark Carney's term as Governor will now coincide with the end of Ben Broadbent's as deputy governor. Laying the ground for him to take over? | Mark Carney's term as Governor will now coincide with the end of Ben Broadbent's as deputy governor. Laying the ground for him to take over? |
| 6.22pm GMT | 6.22pm GMT |
| 18:22 | 18:22 |
| Carney to stay until 2019 - instant reaction | Carney to stay until 2019 - instant reaction |
| Sky News’s Dharshini David says Carney has made a sensible decision by staying on for an extra 12 months. | Sky News’s Dharshini David says Carney has made a sensible decision by staying on for an extra 12 months. |
| Neat work by #Carney: avoids being Governor who bailed on Brexit but is out before full impact of deals clear (& 2yrs before his full term) | Neat work by #Carney: avoids being Governor who bailed on Brexit but is out before full impact of deals clear (& 2yrs before his full term) |
| Kate Devlin of The Herald points out that Downing Street’s charm offensive this morning didn’t persuade Carney to do three more years: | Kate Devlin of The Herald points out that Downing Street’s charm offensive this morning didn’t persuade Carney to do three more years: |
| Hours after No 10 says PM thinks Carney is "absolutely" the best man for the job he announces he is leaving two years early. | Hours after No 10 says PM thinks Carney is "absolutely" the best man for the job he announces he is leaving two years early. |
| ITV’s Chris Ship wonders if Mark Carney has half an eye on Canadian politics.... | ITV’s Chris Ship wonders if Mark Carney has half an eye on Canadian politics.... |
| It just happens for the politically ambitious Canadian Mark Carney - that the next Canadian election is due in ... err ... 2019. | It just happens for the politically ambitious Canadian Mark Carney - that the next Canadian election is due in ... err ... 2019. |
| 6.17pm GMT | 6.17pm GMT |
| 18:17 | 18:17 |
| Mark Carney has surprised pretty much everyone by deciding that he’ll hang around at the Bank of England for another 12 months, until June 2019. | Mark Carney has surprised pretty much everyone by deciding that he’ll hang around at the Bank of England for another 12 months, until June 2019. |
| It feels like a halfway-house decision, which will disappoint those who hoped he’d stay until 2012. | It feels like a halfway-house decision, which will disappoint those who hoped he’d stay until 2012. |
| But it may also placate some of his Brexit-supporting critics; as Carney will depart shortly after Britain’s exit from the EU is completed (assuming Theresa May starts the process in March 2017, as planned). | But it may also placate some of his Brexit-supporting critics; as Carney will depart shortly after Britain’s exit from the EU is completed (assuming Theresa May starts the process in March 2017, as planned). |
| 6.10pm GMT | 6.10pm GMT |
| 18:10 | 18:10 |
| Philip Hammond has sent a rather short reply to Mark Carney. | Philip Hammond has sent a rather short reply to Mark Carney. |
| In it, the chancellor says he is “very pleased” that he will continue as Bank of England governor until June 2019, to provide “highly effective leadership” during this critical time. | In it, the chancellor says he is “very pleased” that he will continue as Bank of England governor until June 2019, to provide “highly effective leadership” during this critical time. |
| 6.06pm GMT | 6.06pm GMT |
| 18:06 | 18:06 |
| Read Mark Carney's letter | Read Mark Carney's letter |
| Here’s the full letter which Mark Carney sent to chancellor Philip Hammond tonight, saying he would be “honoured to extend my time of service as Governor for an additional year to the end of June 2019.” | Here’s the full letter which Mark Carney sent to chancellor Philip Hammond tonight, saying he would be “honoured to extend my time of service as Governor for an additional year to the end of June 2019.” |
| 6.00pm GMT | 6.00pm GMT |
| 18:00 | 18:00 |
| CARNEY ANNOUNCEMENT: GOVERNOR TO SERVE EXTRA YEAR | CARNEY ANNOUNCEMENT: GOVERNOR TO SERVE EXTRA YEAR |
| BREAKING NEWS: Mark Carney has decided to staying on as Bank of England governor for another year. | BREAKING NEWS: Mark Carney has decided to staying on as Bank of England governor for another year. |
| The Bank of England has just announced that Carney will remain in post until the end of June 2019, 12 months longer than originally planned. | The Bank of England has just announced that Carney will remain in post until the end of June 2019, 12 months longer than originally planned. |
| But crucially, Carney is not taking up the option of three more years -- despite Theresa May’s vote of confidence today. | But crucially, Carney is not taking up the option of three more years -- despite Theresa May’s vote of confidence today. |
| Carney says this extra 12 months should cover the period over which Britain leaves the European Union, and will help “secure an orderly transition” to the UK’s new relationship with Europe. | Carney says this extra 12 months should cover the period over which Britain leaves the European Union, and will help “secure an orderly transition” to the UK’s new relationship with Europe. |
| More to follow! | More to follow! |
| 5.50pm GMT | 5.50pm GMT |
| 17:50 | 17:50 |
| If you’re just tuning in, I’d better explain that the question on the City of London’s collective mind is whether Mark Carney decides to stay on at the Bank of England until 2021. | If you’re just tuning in, I’d better explain that the question on the City of London’s collective mind is whether Mark Carney decides to stay on at the Bank of England until 2021. |
| Under his original contract, he is due to leave in the summer of 2018, but he has the option to stick in the job for another three years. | Under his original contract, he is due to leave in the summer of 2018, but he has the option to stick in the job for another three years. |
| Some pro-Brexit politicians have heaped heavy criticism on Carney, saying he was discredited for being unduly pessimistic about leaving the EU. | Some pro-Brexit politicians have heaped heavy criticism on Carney, saying he was discredited for being unduly pessimistic about leaving the EU. |
| But earlier today, Theresa May’s spokeswoman gave him a resounding endorsement, saying: | But earlier today, Theresa May’s spokeswoman gave him a resounding endorsement, saying: |
| “It is clearly a decision for him, but the PM would certainly be supportive of him going on beyond his five years. | “It is clearly a decision for him, but the PM would certainly be supportive of him going on beyond his five years. |
| The PM has always had a good working relationship with the governor of the Bank of England and intends to continue that.” | The PM has always had a good working relationship with the governor of the Bank of England and intends to continue that.” |
| Carney and May then spoke for around an hour and a half today. | Carney and May then spoke for around an hour and a half today. |
| 5.36pm GMT | 5.36pm GMT |
| 17:36 | 17:36 |
| Decision could come shortly.... | Decision could come shortly.... |
| We’re also hearing that a decision on Mark Carney’s future could come this evening.... | We’re also hearing that a decision on Mark Carney’s future could come this evening.... |
| Updated | Updated |
| at 5.40pm GMT | at 5.40pm GMT |
| 5.31pm GMT | 5.31pm GMT |
| 17:31 | 17:31 |
| Investors would probably be reassured if Mark Carney announces he’ll stay at the Bank of England for another three years. | Investors would probably be reassured if Mark Carney announces he’ll stay at the Bank of England for another three years. |
| This is from Reuters’ latest update on the governor: | This is from Reuters’ latest update on the governor: |
| The career plans of a man once dubbed the “outstanding central banker of his generation” have gripped financial markets. Some of the recent slide in sterling and rise in government bond yields have been attributed by analysts to the prospect of Carney leaving the BoE. | The career plans of a man once dubbed the “outstanding central banker of his generation” have gripped financial markets. Some of the recent slide in sterling and rise in government bond yields have been attributed by analysts to the prospect of Carney leaving the BoE. |
| “If Carney was to stay until 2021 that would somewhat reassure markets,” said Hetal Mehta, senior European economist with Legal & General Investment Management. | “If Carney was to stay until 2021 that would somewhat reassure markets,” said Hetal Mehta, senior European economist with Legal & General Investment Management. |
| “It would be really unwelcome for (finance minister) Philip Hammond to have to find someone new over the course of next year when he will have a million and one other things to worry about.” | “It would be really unwelcome for (finance minister) Philip Hammond to have to find someone new over the course of next year when he will have a million and one other things to worry about.” |