As noted here yesterday, citing reports in British newspapers such as The Times and Mail Online, Mark Carney’s “self-imposed deadline” for declaring whether he will stay in office beyond 2018 is fast approaching, and the central banker may decide to step down as soon as next week. Reportedly, the 51-year old Canadian may announce his decision “within days” at his next scheduled public appearance on Thursday, when the BOE announces its policy decision and the governor holds a press conference in London.

Today, the FT followed up with a report that suggests Carney’s tenure at the BOE may indeed be coming to an end, when it reported that “the BoE declined on Sunday to dismiss speculation that the governor might announce his decision this week alongside the quarterly inflation report.”

The FT’s Chris Giles prefaced this by saying that “ardent supporters of Britain’s vote to leave the EU believe they are on the verge of another victory by forcing Mark Carney to resign as governor of the Bank of England before the end of his term in 2018.”

The impact on sterling will likely be rather adverse when it opens for trading:

With the governor seen by financial markets as a steady hand on economic policy in contrast with much more volatile government communication of its economic plans, sterling would again be vulnerable were he to announce his departure.

The fate of Carney may be linked to recent speculation whether the BOE has become too political, or is even independent: “Brexiters, who feel Mr Carney was always too supportive of Britain remaining in the EU, scent blood in their feud with the governor. Daniel Hannan, a Conservative MEP, said: “I am sorry to say this — he seems a nice enough fellow — but Mark Carney should indeed resign. He politicised his office inexcusably.””

The post-Brexit political regime has been on the fence about the fate of the BOE governor: Lord Lawson, the former chancellor, and Jacob Rees-Mogg and Bernard Jenkin, prominent Conservative MPs have also called for the governor’s head in recent weeks, saying that he was too doom-laden on the post-Brexit economy and had been too political in office.

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