Mark Carney is expected to serve his full eight-year term as the governor of the Bank of England despite the barrage of criticism from those who championed Britain’s vote to leave the EU.
The Canadian banker is set to announce by the end of the year whether he will remain at his post beyond 2018, but reports over the weekend have been suggesting he might make a statement as soon as Thursday to put an end to damaging speculations.
According to the Financial Times, the Governor has told friends that he is “leaning strongly” towards staying at the Bank of England.
Sources reportedly said Carney is ready to defend the Bank of England’s independence despite sustained attacks from Brexiteers
Carney told a parliamentary committee last week: “To be clear, it’s an entirely personal decision and no one should read anything into that decision in terms of government policy. It is a privilege for me to have this role.”
“Like everyone, I have personal circumstances that I have to manage. This role demands total attention and I intend to give it as long as I can.”
October has been the unkindest month for Carney, under fire ever since Theresa May criticised the impact of quantitative easing in her Conservative party conference speech, saying “people with assets had got richer, people without them had suffered”.
Michael Gove, the former Justice Secretary and one of the leaders of the Leave campaign, launched an attack on Carney, saying he should “curb his arrogance”, while Conservative MP and Eurosceptic Jacob Rees-Mogg described Mr Carney as a “sore loser.”
Meanwhile, Daniel Hannan, a Conservative MP, added to calls for his resignation saying: “I am sorry to say this - he seems a nice enough fellow- but Mark Carney should indeed resign. He politicised his office inexcusably.”
On the other side, Greg Clark, the business secretary, told BBC1’s Andrew Marr Show on Sunday that Carney had done a “tremendous job” for the UK economy.
While, Vicky Pryce, of the Centre for Economics and Business Research, on Monday said that anyone who criticises Mark Carney’s move is “criticising the Bank’s independence.”
“Mark Carney was absolutely right to be prepared to do something about Brexit. The economy wouldn't be growing anything like as fast as it is if it wasn't for his very immediate intervention in the markets,” she said on the BBC’s Today programme.
Financial markets and investors will also be watching developments closely and any signs of political uncertainty could send the pound, which has lost almost a fifth of its value against the dollar since the referendum in June, lower.
Philip Shaw at Investec said: “Uncertainties have risen since the Brexit vote... keeping Carney at the helm for a further three years is the sort of continuity that should be welcomed.”
Carney took up the position in July 2013 under an agreement in which he had a five-year term with the option of another three years.
Earlier this month, the Governor said in a speech that the Bank would not be taking “instruction on our policies” from politicians.
