Bank of England governor Mark Carney to stay until 2019

Bank of England governor Mark Carney announced that he will not serve a full eight-year term, but that he will be extending his contract  to 2019 to help secure an 'orderly transition' to Brexit

Governor of the Bank of England Mark Carney leaves 10 Downing Street in central London PHOTO: AFP
Governor of the Bank of England Mark Carney leaves 10 Downing Street in central London PHOTO: AFP

Bank of England governor Mark Carney put an end to speculation over his future Monday by announcing he would extend his contract for one year to 2019 to help secure an "orderly transition" to Brexit.

Carney will not take up his option to leave in 2018, but at the same time has declined to serve the full eight-year term that would have seen him stay on at the British central bank until 2021.

"I would be honoured to extend my time of service as governor for an additional year to the end of June 2019," he wrote in a letter to finance minister Philip Hammond.

"By taking my term in office beyond the expected period of the Article 50 process, this should help contribute to securing an orderly transition to the UK's new relationship with Europe."

Prime Minister Theresa May is expected to trigger Article 50 of the EU's Lisbon Treaty by the end of March, starting a two-year exit process that would see Britain leave the European Union by early 2019.

According to AFP news agency, Carney has been strongly criticised by members of May's Conservative party over his warnings about the impact of Brexit before the June referendum, while there was speculation about tensions with the government over policy.