Economy

Treasury denies approaching Carney to stay on as BoE governor

Job ad for Canadian’s replacement due in the ‘next month or two’

The Treasury denied on Tuesday it had approached Mark Carney to remain as Bank of England governor for an additional year

Chris Giles
Tue Aug 28 2018 - 18:33

The Treasury denied on Tuesday it had approached Mark Carney to remain as Bank of England governor for an additional year until summer 2020 to delay a difficult recruitment process for one of Britain's top official positions.

Responding to a diary column in the London Evening Standard, a Treasury spokesperson said the government was still planning to advertise for the position "in the next month or two".

“I don’t recognise that reporting at all,” that an approach had quietly been made to Mr Carney to stay on, the spokesperson said.

Speculation over the governor position has intensified over the summer when the Treasury missed its original deadline to post an advert for the job in July.

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The government department now suggests it will advertise for the post along a Job ad for Canadian’s replacement due in the ‘next month or two’.

At a routine parliamentary briefing of reporters on Tuesday, the prime minister’s spokesperson made no comment.

Mr Carney has previously dismissed rumours that he would extend his appointment for a second time. In 2016 he agreed to stay a year longer than planned, serving six out of his eight year term at the BoE, saying this would help smooth the implementation of Brexit, while his family moved back to Canada this summer.

In July, he denied any intention of staying longer in post than June 2019 in the event of a turbulent Brexit. One MP on the Treasury Committee asked if he would hang around for that, gaining the reply that, "March comes before June, yes".

The Treasury has a lot on its plate this autumn, having to prepare a Budget that takes account of at least £20bn a year additional health expenditure and the climax of the Brexit negotiations as well as the appointment of a new governor of the BoE.

Some potential candidates have difficult decisions to make themselves about timing this autumn. Jon Cunliffe, deputy governor for financial stability, for example, has a five-year term in his current role ending at the start of November and he will need some resolution of the position of governor and his role before then.

Treasury officials have said that the government would seek a candidate with an international reputation to be the next governor and have not ruled out another foreign choice.

In April, Philip Hammond, chancellor, who is currently on holiday, said: "The formal process has not yet started but I, and many other people I am sure, may have cast their eye around various rooms to see if any likely looking candidates hove into view". – Copyright The Financial Times Limited 2018

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