City economists have eagerly backed Mark Carney to extend his stay at the Bank of England after a report the Treasury had raised the prospect of an extra year with the governor.
Carney’s term as governor is due to come to an end in June 2019, a year earlier than first planned. However, an extension of his term would give some breathing space for his successor beyond the immediate aftermath of Brexit, in March 2019.
The Treasury has raised the possibility of Carney staying for another year to provide a familiar face during a potentially turbulent Brexit transition, according to the Evening Standard, which is edited by previous chancellor George Osborne.
The Treasury under Philip Hammond is understood to be planning an all but identical process to the recruitment of Carney, with a job advert to be published on the civil service jobs board, as well as in the pages of the Economist magazine.
The advert for Carney’s job went out in the September before the appointment, made by a small coterie of top civil servants along with the chancellor.
Andrew Bailey, the current Financial Conduct Authority boss and former executive director at the Bank, is the current favourite for the role, with Santander UK chair Shriti Vadera and respected Indian economist Raghuram Rajan also among the list of contenders.
However, continuity may be the preferred route for the City.
Silvia Dall’Angelo, senior economist at Hermes Investment Management, said: “It would be ideal if Carney decided to remain at the helm of the Bank of England for longer.
“It would provide continuity in the approach to monetary policy, shoring up business and consumer sentiment during the Brexit process and potentially allowing for a smoother transition,” she said.
However, she added it may be an “unpalatable offer”, given the acrimonious political atmosphere around the Brexit process. Carney has already faced criticisms from Brexit-supporting politicians such as Jacob Rees Mogg.
A spokesperson for the Treasury said: “We will begin recruitment for the next governor of the Bank of England in due course.”