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| Mark Carney to stay at Bank of England until 2019, sparking relief and disappointment – as it happened | Mark Carney to stay at Bank of England until 2019, sparking relief and disappointment – as it happened |
| (35 minutes later) | |
| 8.31pm GMT | |
| 20:31 | |
| Closing summary: Carney surprises everyone | |
| It’s been a long old day, and quite a dramatic one as Mark Carney’s future came to a head faster than most experts expected. | |
| No-one really predicted that the BoE governor would split the difference between his fans, and his critics, and plump to do an extra 12 months duty at Threadneedle Street. | |
| That’s why the decision has been greeted fairly calmly, with the government insisting it’s good news, but businesses understandably concerned about what happens in 2019. | |
| Sir Martin Sorrell probably spoke for many business leaders when he said it was ‘a pity’ that Carney wouldn’t be at the helm until 2021. | |
| Whatever you think about the European Union, there’s an argument that it’s better not to change central bank governors in the middle of the Brexit negotiations. Now, the Treasury has almost three years to find the perfect candidate to replace Carney on 1 July 2019 and help steer Britain into its post-EU future. | |
| The immediate reaction from the City is still quite positive, with the pound up 0.6 of a cent at $1.2245. | |
| The pound rose when Mark Carney said he'd stay at the Bank of England until 2019 https://t.co/BCe96yn2BT pic.twitter.com/4Nwz7EHNq7 | |
| We’ll may find out one day how hard Theresa May fought to keep Carney, or whether this compromise really suits all parties. | |
| We may also find out whether the governor still has serious political ambitions back in Canada. Several commentators, including Bloomberg’s Jill Ward, have suggested he has an eye on the next federal elections, which are due in late 2019.... | |
| ... and right before the next Canadian federal election #cdnpoli | |
| With that, I’m wrapping up for the night. Larry Elliott’s full story on Carney’s decision is now live. Here’s a flavour: | |
| Mark Carney to serve extra year as Bank of England governor | |
| Mark Carney has ended weeks of speculation about his future by agreeing to stay on as governor of the Bank of England until Brexit negotiations with the EU have ended in 2019. | |
| Despite being urged by the prime minister, Theresa May, and the chancellor, Philip Hammond, to serve a full eight-year term at Threadneedle Street, until 2021, Carney said he would only agree to remain in place for an extra year. Hestarted in the job in July 2013. | |
| The governor said in a letter to Hammond that he had intended to leave the Bank for personal reasons after five years, but the altered landscape for the UK following the vote in June to leave the EU had caused him to change his mind..... | |
| Goodnight, and thanks for reading and commenting. GW | |
| 8.14pm GMT | 8.14pm GMT |
| 20:14 | 20:14 |
| Economists give a cautious welcome | |
| Elizabeth Martins, an economist with HSBC, has dubbed Carney’s decision a halfway house (which is a relief, as I plumped for that term earlier :) ). | Elizabeth Martins, an economist with HSBC, has dubbed Carney’s decision a halfway house (which is a relief, as I plumped for that term earlier :) ). |
| She says: | She says: |
| “I guess that markets would have liked to see a 2021 extension, and expected it given indications in the media. But this will go down better than an earlier departure.” | “I guess that markets would have liked to see a 2021 extension, and expected it given indications in the media. But this will go down better than an earlier departure.” |
| (that’s via Reuters) | (that’s via Reuters) |
| And Howard Archer of IHS Global Insight has given the news “two cheers out of three”, and suggests Carney’s detractors should rein themselves in: | |
| Now that Mr. Carney has made his intentions clear, it is to be hoped that everyone gives the Governor maximum support, including his critics. | |
| The UK faces a very challenging period ahead which will be demanding for all policymakers. Matters will not be helped by sniping at the Bank of England Governor or making statements that seemingly question at the Bank of England’s independence | |
| Updated | |
| at 8.37pm GMT | |
| 8.11pm GMT | 8.11pm GMT |
| 20:11 | 20:11 |
| Some Bank of England trivia, from Newnight’s Lewis Goodall: | Some Bank of England trivia, from Newnight’s Lewis Goodall: |
| If you were wondering this makes Carney the shortest-serving Governor of the Bank of England since Leslie O'Brien in the 60s. You weren't?Oh | If you were wondering this makes Carney the shortest-serving Governor of the Bank of England since Leslie O'Brien in the 60s. You weren't?Oh |
| 7.57pm GMT | 7.57pm GMT |
| 19:57 | 19:57 |
| Jacob Rees-Mogg, the Conservative MP who clashed with Mark Carney at several parliamentary hearings, doesn’t appear very happy with tonight’s news. | Jacob Rees-Mogg, the Conservative MP who clashed with Mark Carney at several parliamentary hearings, doesn’t appear very happy with tonight’s news. |
| He told Reuters that: | He told Reuters that: |
| “I think the uncertainty was bad, but I still think he ought to have gone because of his bias over Brexit.” | “I think the uncertainty was bad, but I still think he ought to have gone because of his bias over Brexit.” |
| 7.46pm GMT | 7.46pm GMT |
| 19:46 | 19:46 |
| Some pro-Brexit Conservative MPs aren’t best pleased that Mark Carney will remain at the Bank of England until 2019, says the City AM newspaper. | Some pro-Brexit Conservative MPs aren’t best pleased that Mark Carney will remain at the Bank of England until 2019, says the City AM newspaper. |
| One leading Tory brexiteer told them that: | One leading Tory brexiteer told them that: |
| My sense is that if [Carney] is going to stay to 2019 he needs to find a way to row in behind the Prime Minister and start to find a way to be a bit more positive. | My sense is that if [Carney] is going to stay to 2019 he needs to find a way to row in behind the Prime Minister and start to find a way to be a bit more positive. |
| I would like him to stay and do a good job, and demonstrate some enthusiasm for leaving the EU, seeing as we are going to. | I would like him to stay and do a good job, and demonstrate some enthusiasm for leaving the EU, seeing as we are going to. |
| More here. | More here. |
| I got some snap reactions from Tories on #Carney's decision to stay. It turns out they're not all thrilled... https://t.co/0wRYV9msqw pic.twitter.com/XmkkH9VcxD | I got some snap reactions from Tories on #Carney's decision to stay. It turns out they're not all thrilled... https://t.co/0wRYV9msqw pic.twitter.com/XmkkH9VcxD |
| 7.39pm GMT | 7.39pm GMT |
| 19:39 | 19:39 |
| Duncan Weldon, head of research at Resolution Group, suggests Mark Carney has played the game rather well.... | Duncan Weldon, head of research at Resolution Group, suggests Mark Carney has played the game rather well.... |
| A cynic might suggest Carney has just extended his effective term and made himself immune to political criticism. | A cynic might suggest Carney has just extended his effective term and made himself immune to political criticism. |
| 7.33pm GMT | 7.33pm GMT |
| 19:33 | 19:33 |
| Adam Marshall, Director General of the British Chambers of Commerce (BCC), is pleased that Mark Carney has decided his future. | Adam Marshall, Director General of the British Chambers of Commerce (BCC), is pleased that Mark Carney has decided his future. |
| But he’s also concerned that his replacement (whoever she or he is) will take over at a critical time: | But he’s also concerned that his replacement (whoever she or he is) will take over at a critical time: |
| ”Businesses want stability at a time of economic change, particularly at key institutions like the Bank of England. | ”Businesses want stability at a time of economic change, particularly at key institutions like the Bank of England. |
| Firms will be reassured that the recent speculation over the timing and nature of Mark Carney’s departure has been put to rest. However, the Governor will still be leaving at a sensitive time for the economy - so businesses will want to see a clear and ordered transition plan.” | Firms will be reassured that the recent speculation over the timing and nature of Mark Carney’s departure has been put to rest. However, the Governor will still be leaving at a sensitive time for the economy - so businesses will want to see a clear and ordered transition plan.” |
| 7.18pm GMT | 7.18pm GMT |
| 19:18 | 19:18 |
| An interesting reaction from Rupert Harrison of BlackRock, the asset manager. | 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 | 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. | Harrison is a former advisor to George Osborne, who appointed Carney in the first place. |
| 7.09pm GMT | 7.09pm GMT |
| 19:09 | 19:09 |
| May: Carney's decision is good news for UK | 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. | 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). | May’s spokeswoman says (via Reuters). |
| “The prime minister welcomes the governor’s decision to stay on beyond his initial five-year term. | “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.” | 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. | However, there’s no word on whether May would rather Carney had stayed until 2021. |
| Updated | Updated |
| at 7.10pm GMT | at 7.10pm GMT |
| 7.05pm GMT | 7.05pm GMT |
| 19:05 | 19:05 |
| Zing! | Zing! |
| Congratulations to Mark Carney for finally delivering a piece of forward guidance that the markets can understand. | Congratulations to Mark Carney for finally delivering a piece of forward guidance that the markets can understand. |
| 7.04pm GMT | 7.04pm GMT |
| 19:04 | 19:04 |
| Tyrie: Carney has a lot of explaining to do.... | 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. | 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.... | 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. | 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. | 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 | Updated |
| at 7.05pm GMT | at 7.05pm GMT |
| 6.59pm GMT | 6.59pm GMT |
| 18:59 | 18:59 |
| The CBI’s principal economist, Alpesh Paleja, says Carney has given us a Halloween treat: | 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). | Trick or treat? Mark #Carney to stay on until June 2019 (it's a treat, in case you're wondering). |
| 6.57pm GMT | 6.57pm GMT |
| 18:57 | 18:57 |
| Sorrell: Carney may be hurt by unjustified criticism | 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. | 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 his full term.” | |
| “Maybe he was a little bit bruised by the criticism, I think unjustified criticism, that he’s been subjected to,” Sorrell said. | “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. | Sorrell also warned that it will be “touch and go” as to whether the UK has finished the Brexit negotiations by June 2019. |
| Updated | Updated |
| at 8.37pm 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. |