Outgoing Bank of England governor Mark Carney 'may be asked to stay on if there is another Brexit extension' amid slow progress at finding a replacement for the key economic role

  • The Canadian economist is due to step down at the end of January
  • Reports claim he may be asked to stay on if Brexit doesn't happen on October 31
  •  The search for his successor is also going slowly and may come after an election

Bank of England governor Mark Carney could be asked to stay on in the post if Boris Johnson fails to engineer Brexit on October 31, reports suggest.

The Canadian economist is due to step down at the end of January but may be approached to delay his departure if the UK does not quit the EU on Halloween.

The search for his successor - who was due to be named in the autumn - is also going slowly and is unlikely until after an expected winter election, a source told the Financial Times.

The news may alarm Brexiteers, not only because it suggests there could be a Brexit delay but also because the governor has been accused of being part of Project Fear with a series of dire warnings. 

Last month he said No Deal would impose a major hit on the economy - and there was a one in three chance the country would plunge into recession even with an agreement.  

Canadian economist Mr Carney is due to step down at the end of January but may be approached to delay his departure if the UK does not quit the EU on Halloween

Canadian economist Mr Carney is due to step down at the end of January but may be approached to delay his departure if the UK does not quit the EU on Halloween

Mr Johnson (pictured today on a visit to a hospital in east London) is said to have started to share details of his Brexit blueprint with the EU as talks on a possible deal intensify'

Mr Johnson (pictured today on a visit to a hospital in east London) is said to have started to share details of his Brexit blueprint with the EU as talks on a possible deal intensify'

Failure to secure an agreement would cause the Pound to tumble even further, push inflation up, and heighten even further the danger that UK plc goes into the red, Mr Carney suggested.

He also ridiculed claims that the country would benefit from certainty that No Deal is happening, saying it would just 'crystalise a bad economic outcome'.

Mark Carney's term as Bank of England Governor was extended to January 2020 a year ago by then chancellor Philip Hammond.

The seven month extension was designed to help smooth Britain's exit from the EU ease worries in the markets. 

But with the past year's Brexit chaos and delays there are fears regarding a handover in the middle of such a massive upheaval. 

 Mr Carney had already extended his five year stay in London by 12 months to June 2019. He made the first decision in the aftermath of the Brexit vote. He was appointed in 2013.  

Downing Street yesterday hit back at claims by senior EU figures that the Prime Minister (pictured today at Whipps Cross University Hospital in Leytonstone) has yet to explain the changes he wants to see

 Downing Street yesterday hit back at claims by senior EU figures that the Prime Minister (pictured today at Whipps Cross University Hospital in Leytonstone) has yet to explain the changes he wants to see

Mr Carney has given politicians a series of blunt assessments of the impact of Brexit on the economy, which have infuriated Brexiteers

Mr Carney has given politicians a series of blunt assessments of the impact of Brexit on the economy, which have infuriated Brexiteers

It came as Boris Johnson struggled to sort out the Brexit mess after an embarrassing trip to Europe.

The Prime Minister has started to share details of his Brexit blueprint with the EU as talks on a possible deal intensify, Government sources said last night.

Downing Street yesterday hit back at claims by senior EU figures that the Prime Minister has yet to explain the changes he wants to see.

Government sources said EU negotiators were being ‘shown pieces of paper’ giving the outline of Mr Johnson’s plans, including the removal of the controversial Irish backstop.

But sources acknowledged that Mr Johnson’s full blueprint may not be published until next month because of fears EU members would leak it and risk a row at the Conservative Party conference. 

The Bank of England declined to comment on the claims regarding Mr Carney today. 

 

 

Bank of England governor Mark Carney 'may be asked to stay on if there is another Brexit extension'

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