Mark Carney, the Bank of England governor announced today that he will be stepping down from his position in June 2019, serving two years short of the eight usually served by previous governors. Carney has ended speculation about his future by making the announcement that…
Mark Carney, the Bank of England governor announced today that he will be stepping down from his position in June 2019, serving two years short of the eight usually served by previous governors.
Carney has ended speculation about his future by making the announcement that he will stay on as the Bank of England’s governor for only three more years.
Despite staying on a year longer past his initial five-year term, he will not be taking up the optional three additional years, reports the BBC. His remaining time as governor will see him staying on as the U.K. negotiates its exit from the European Union.
U.K. Prime Minister Theresa May is reported to have said that Carney’s decision to stay an extra 12 months would provide ‘continuity and stability as we negotiate our exit from the European Union.’
U.K. Chancellor Philip Hammond has also welcomed Carney’s decision to stay an extra year stating that Carney would help to lead the Bank through a critical time for the British economy.
Speaking to a House of Lords committee last week, Carney said that if he decided to leave:
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.
Despite the London FinTech sector feeling the pressure post-Brexit, the Bank of England has been reported in the past as stating that the Bank wouldn’t stifle FinTech innovation as it works at understanding its risks and benefits.
The Bank of England also announced earlier this year that it was exploring new financial technologies by working with FinTech companies to improve on its cybersecurity and new payment systems.
Even though the U.K. faces a turbulent few years ahead of it, the Bank of England’s governor seems to be doing his best to give the country a fighting chance when it leaves the EU. Not only that, but to safeguard the stability of the U.K. financial system, the Bank of England has been exploring the next generation of its Real-Time Gross Settlement (RTGS) service.
Furthermore, the Bank of England’s RSCoin, which has been designed to strengthen the country’s economy and global trade, demonstrates that the bank understands the significance behind digital currencies and the efficiency that they provide compared to fiat currencies.
So while Carney may be stepping down in 2019 as the governor of the Bank of England many will be looking to see what impact, if any, this could have on the pound. The Independent reported last month that the pound lost around a fifth of its value against the dollar since the EU referendum in June.
Images from Shutterstock and Youtube/BBC.
Last modified: January 25, 2020 11:59 PM UTC