Labour backs 'Brexit planner' Mark Carney over Bank of England decision

Mark Carney's decision to stay an extra year as the governor of the Bank of England is good news for the UK, according to Labour.

"The prime minister clearly recognises the Bank had a plan for the aftermath of the Brexit vote when the government didn't," Jonathan Reynolds MP told IBTimes UK last night (31 October).

The shadow City minister's comments came after Carney promised to step away from Threadneedle Street in June 2019.

The decision, following a weekend of speculation about the Canadian's future, means he will serve one more year than expected.

Having started the role in 2013, Carney will be short of the eight-year tenure typically carried out by Bank of England governors.

The top economist made the announcement hours after a meeting with Prime Minister Theresa May at Number 10.

Some Tory Eurosceptics had been critical of Carney's decision to issue warnings about the economic implications of a Brexit ahead of the 23 June referendum.

Conservative MP Jacob Rees-Mogg, a member of the powerful Treasury Committee, asked Carney if he would adopt a similar approach during a general election campaign.

The Bank of England governor said the referendum was a "single binary decision" and stressed the central bank had observed the purdah period, which puts strict restrictions on what civil servants can do ahead of a ballot.

Carney told the government last night that the UK's negotiations with the EU, which are expected to start by March 2017 and run for two years, were key to his decision.

"Recognising the importance to the country of continuity during the UK's Article 50 negotiations, and notwithstanding those personal circumstances, I would be honoured to extend my time of service as governor for an additional year to the end of June 2019," he said.

"By taking my term in office beyond the expected period of the Article 50 process, this should help contribute to securing an orderly transition to the UK's new relationship with Europe."