Mark Carney to step down as Bank of England governor

The search for a new governor has begun after an announcement that the incumbent will leave the post in January 2020.

Mark Carney, who oversees the Bank of England's three main policy committees, one of which sets interest rates, will leave the post on 31 January 2020. 

The governor has been in the post since July 2013, and had his tenure extended by the Treasury to 2020 in order to help support a “smooth exit” from the European Union.

The Chancellor of the Exchequer, Philip Hammond, comments: “In today’s rapidly evolving economy,  the role of governor is more important than ever.

“Finding a candidate with the right skills and experience to lead the Bank of England is vital for ensuring the continuing strength of our economy and for maintaining the UK’s position as a leading global financial centre.”

The role will be publicised on the Bank of England public appointments website. The role offers a remuneration of £480,000 a year.

Candidates must be able to lead a “complex and powerful financial institution”.

Of the current governor, Mr Hammond says: “I look forward to working with Mark Carney over the remaining months of his term as governor. His steady hand has helped steer the UK economy through a challenging period and we are now seeing stable, low inflation and the fastest wage growth in over a decade.

“And under Mark’s leadership the Bank of England has been at the forefront of reforms to make our financial system safer and more accountable.”

Mr Carney oversaw the first increase in interest rates since the financial crisis, increasing the rate by 0.25% to 0.5% in November 2017.

This followed a cut to the bank rate in the aftermath of the EU referendum in 2016 when it was reduced to a record low of 0.25%.

The rate currently stands at 0.75%, which was raised above 0.5% in August 2018, the first time that it rose above this level since the financial crisis in 2009.

This article was originally written by our sister publication Moneywise.

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