Bank of England Mark Carney set to stay - but told to stop ‘acting like a rock star’

Bank of England governor Mark Carney.
Photo : Dylan Martinez/PA Wire

Bank of England governor Mark Carney. Photo : Dylan Martinez/PA Wire - Credit: PA

Bank of England Governor Mark Carney is said to be ready to serve his full eight-year term, defying pro-Brexit campaigners demanding his resignation.

Mr Carney has told friends that he is likely to make an announcement on his future this week, according to the Financial Times.

The governor. who is expected to speak first to Prime Minister Theresa May and Chancellor Philip Hammond before making a final decision. was said to be “leaning strongly” towards remaining in his post.

The report comes amid mounting speculation he was preparing to stand down early amid bitter criticism by Brexit supporters of his conduct during the EU referendum campaign.

Critics have complained he went too far in warning of the economic dangers of leaving the EU in order to bolster the Remain campaign.

The relatively robust performance of the economy since the country voted for Brexit has encouraged prominent Conservatives including back-bencher Jacob Rees-Mogg and former chancellor Lord Lawson to demand he should go.

When he took up the post in 2013, it was agreed that Canadian Mr Carney would serve an initial five-year term with the option of another three years.

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The growing controversy around his position led to speculation that he would go in 2018 rather than continue to 2021.

Earlier Mr Carney received warm support from Business Secretary Greg Clark who praised his performance since becoming governor, while adding that it was “clearly a decision for him” whether he carried on.

“Mark Carney has done a tremendous job, a fantastic job during his tenure there. It’s clearly a decision for him,” he told BBC1’s The Andrew Marr Show on Sunday.

“I was the Financial Secretary to the Treasury when he was appointed and I think it was a brilliant appointment.”

But Leading pro-Brexit Tory MEP Daniel Hannan warned that if Mr Carney remains in his post he must stop acting like a “rock star”.

The MEP said Mr Carney would have to “comport” himself “as a quiet and discreet public servant who errs on the side of saying too little”.

“It’s up to him, but if he does stay it’s got to be on the basis that he’s not the rock star banker who presumes to tell Scotland whether to stay in Britain, which way to vote. Rather, sticks narrowly to his brief,” Mr Hannan told BBC Radio Four’s Today programme.

WPP chief executive Sir Martin Sorrell praised Mr Carney for doing a “stellar” job as he warned “the jury’s out” on whether the Brexit vote will trigger a recession.

“The action by the Bank of England very quickly after the Brexit vote, I think, helped. We will have to see whether there is a recession, I guess the jury is still out,” he told the BBC.