The British government's Brexit strategy took yet another hit Tuesday after it seemingly had to convince Bank of England Governor Mark Carney to stay on and guide it through the country's divorce from the European Union.
The embarrassing effort comes just one week after the government made concessions to Nissan (NSANY) to lure manufacturing of two of its models to the U.K, with lawmakers accusing Prime Minister Theresa May of assembling an E.U. exit plan on the hoof.
Carney indicated late Monday that he will remain at Threadneedle Street until June 2019, one year more than he had intended, ending weeks of speculation that had unsettled markets and investors.
The Governor had come under intense fire from some lawmakers for what they deemed was a pessimistic view on the U.K. economy in the run-up to and following the referendum in late June, with some calling for him to step down immediately.
Although the full term of a Governor is usually eight years, Canadian-born Carney had a break clause in his contract that would have allowed him to leave after five years for personal reasons related to the schooling of his young daughters. It is now expected that his family will return to Canada in 2018 while he stays in London to see Brexit through.
"My personal circumstances have not changed but other circumstances clearly have, most notably the U.K.'s decision to leave the European Union," Carney wrote in a letter to Finance Minister Philip Hammond, following a meeting with May that lasted more than an hour.