May Backs Governor Carney

Theresa May backs Mark Carney as ‘best man’ for BoE governor job

Theresa May believes Mark Carney is “absolutely” the best man for the job as Bank of England governor and will support him staying on in his role, her spokeswoman said this morning.

Carney said last week that he will make a decision on his future with the central bank by the end of the year. His current departure date is mid-2018, but he must now decide if he will leave then or take up an option to stay at the central bank as governor until 2021.

Politicians critical of his stance on the EU referendum had called for him to step down in 2018.

Over the weekend, rumours were rife that Carney was unlikely to take up the three-year extension to his term at the central bank, before a report from the FT last night said Carney, who became governor in 2013, would stay on to serve a full eight-year term instead of five.

This morning Theresa May’s spokeswoman said the Prime Minister “supports” Carney staying in his role as governor, but recognises it is also “a decision for him”.

Asked if Mr Carney is the right man for the job, Mrs May’s spokeswoman replied:

“Absolutely”.

Asked if the Prime Minister agrees with sources in the Financial Times who suggest that Mark Carney believes 2018 could be the “darkest days” for the UK, her spokeswoman said:

“The Prime Minister and the Government are focused on how we make the most of the strong fundamentals of our economy and take the opportunity of the UK leaving the EU making sure have a smooth and orderly departure and seize the opportunities ahead.”

She also added that the Prime Minister has a “good working relationship” with the Bank of England governor, and intends to “continue” that.

Pound becomes world’s worst-performing currency this month as ‘hard Brexit’ fears spook currency markets

The pound has claimed the unwanted accolade of world’s worst performing currency this month, lagging behind around 150 of its peers, as ‘hard Brexit’ fears spooked currency markets in October.

It is on track for its six month of consecutive losses against the dollar, and it is poised for its worst month since the EU referendum.

The pound has fallen 6.2pc so far this month, and having fallen every month since April, it currently is the worst-performing major currency this year, having dropped by almost 18pc.

Mark Carney’s decision is also likely to weigh on the pound’s performance. Kathleen Brooks, of City Index, said if Carney confirms he is staying put, it could trigger a rally and send the pound back towards $1.25 against the dollar.

Telegraph

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell