Monday, October 31, 2016

Bank of England governor's term extended

Mark Carney, the governor of the Bank of England, who was appointed for a five year term with the option to extend for a further three, has announced that he will stay to 2019 e.g. extend the original five year term by one year.

Looking at his overall performance Carney is generally seen by the markets as a successful governor: there had been some speculation in the press, ranging from the foolish to the utterly idiotic (e.g. a joke that Jacob Rees Mogg MP might be given the job was taken seriously in some journalistic quarters - as if the government would want another by-election!) that he might be encouraged to go early but this would really not have been a good idea.

This speculation appears to have come from that part of the Brexit supporting spectrum who imagine that a 52% to 48% victory in the referendum gives them some kind of mandate to drive out of senior public office anyone who has said something they disagree with.

That is really not a good idea. The headbangers on both sides need to come to terms with the fact that the Leave side won, and therefore Britain will quit the EU, but they did not get the sort of victory which would give them a mandate to purge those who were on the other side unless they are actively trying to sabotage the result, which Mark Carney is not.

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