Foreign News: Carney considering staying on, Lloyds prices with Libor replacement Sonia
The continuing uncertainty and chaos surrounding the Brexit process has led to Bank of England governor Mark Carney signalling he may stay on as head of the central bank past his previously planned departure date, reports The Washington Post. Carney told the UK's Treasury Select Committee that he had discussed the possibility of staying on with Treasury chief Philip Hammond and a decision would be made soon. He said "a measure of continuity" might help with the fraught Brexit process. Carney was originally set to leave in June next year. Lloyds Banking Group has become the first bank to price a bond using the reformed interest rate benchmark Sonia, by selling £750 million of debt linked to the alternative benchmark to the scandal-tarnished Libor rate, the FT reports. Lloyds priced the three-year bond at 43 basis points above the Sonia rate, some weeks after the European Investment Bank pioneered the use of Sonia to structure a transaction when it sold £1 billion of five-year debt priced at 35 bps above Sonia.