Brexit Extension Complicates Decision on BOE’s Carney Successor

(Bloomberg) --

The European Union’s agreement to delay Brexit raises the prospect that the Bank of England governor may yet again put off his own departure.

Mark Carney, who has twice extended his stay already, is now due to step down on Jan. 31. That’s also the new deadline for leaving the bloc. If he sticks to those those plans, his successor would have deal with the economic consequences of a potentially messy departure on day one.

Crunch Time

In 2016, after Britain narrowly voted to leave the EU, Carney was quick to promise action to calm financial markets and businesses.

Asked in a Bloomberg Television interview earlier this month whether he would stay on again if asked by the Chancellor, Carney did not reject the idea, although he emphasized that it may not be necessary.

“I’m here at this moment in order to ensure there is a smooth transition to my successor,” he said. “The government’s got plenty of time to choose a successor and there are many qualified candidates.”

Chancellor Sajid Javid, who is charged with making the appointment, was given a shortlist by his predecessor, though it hasn’t been made public, and it’s not clear whether someone on the shortlist would even get the job.

Naming any candidate right before an election, by a government that itself is only a few months old, could risk making the appointment appear less legitimate. Names linked to the role include Deputy Governor Ben Broadbent as well as outsiders such as Helena Morrissey.

The BOE declined to comment. A Treasury spokesman reiterated that the process remains on track and that there will be an announcement in due course.

--With assistance from Jessica Shankleman and Jill Ward.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Brian Swint, David Goodman

©2019 Bloomberg L.P.