Bank of England (BOE) Governor Mark Carney announced in a press release that he will stay on at the British central bank until June 2019. In a letter to the government, Carney confirmed that he is extending his term to the summer of 2019, which could coincide with Britain’s exit from the European Union (EU).
Here is what the former head of the Bank of Canada (BoC) wrote in the letter:
“I would be honoured to extend my time of service as Governor for an additional year to the end of June 2019. 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.”
The news comes one week after British Prime Minister Theresa May criticized the central bank’s use of quantitative easing and ultra-low interest rates.
“While monetary policy – with super-low interest rates and quantitative easing – provided the necessary emergency medicine after the financial crash, we have to acknowledge there have been some bad side effects,” May told a Conservative conference, where tories want Carney axed from his position. “People with assets have got richer. People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer.
Despite her criticisms, the Prime Minister’s Office still believes Carney is the right man for the job. Here is what she wrote:
“I am very pleased to hear that you intend to continue as Governor of the Bank of England until the end of June 2019. This will enable you to continue your highly effective leadership of the Bank through a critical period for the British economy as we negotiate our exit from the European Union.”
Adopting his past policies of record-low interest rates in Canada, Carney has irked a lot of Britons who feel the BOE’s policies only help the wealthy and hurt the low- and middle-class.
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