Carney's choice - stay for Brexit or seek new role in 2018?

Fri Sep 23, 2016 5:16am EDT
 
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By William Schomberg

LONDON, Sept 23 (Reuters) - Mark Carney has been taking the big decisions for Britain's economy for the past three years, but his next one will be much more personal.

The Canadian has said he intends to say before the end of this year whether he will stick to his original plan to step down as Bank of England governor in less than two years' time, or extend his stay until 2021.

Above all, he will have to decide whether he wants to stay for the task of steering Britain's economy through what is likely to be a period of upheaval as it leaves the European Union and begins life outside the bloc.

Some think that is the kind of job that Carney - who was hailed by the man who hired him, former British finance minister George Osborne, as the "outstanding central banker of his generation" - would relish.

When his move from the Bank of Canada to the BoE was announced in 2012, Carney said he was "going to where the challenges are greatest" at a time when Britain was still suffering from the hangover of the global financial crisis.

Richard Barwell, a former BoE economist, said the even bigger challenge of Brexit would appeal to Carney's sense of ambition. "He wants to be in the spotlight and on the world stage," Barwell, who now works at BNP Paribas, said.

Even if he privately has doubts about staying, Carney might find it hard to leave London after five years, given the expected Brexit shock to the economy. "Walking away at time of crisis might not be seen as the done thing," Barwell said.

When Carney agreed to come to London, he secured an agreement from Osborne that he would run the BoE between 2013 and 2018, with an option to serve out a full eight-year term if he wanted to take it up.   Continued...