Carney gets Bank of England top job

Mark Carney, currently governor of the Bank of Canada, will take over from Mervyn King to run the UK central bank in June 2013, despite earlier appearing to deny interest in role.

Mark Carney will become the next Bank of England governor when incumbent Mervyn King’s term expires on June 30, 2013.

The decision was announced in Parliament by the UK’s chancellor George Osborne at 3.30pm today (November 26) and caught many observers by surprise. Osborne branded Carney the “outstanding central banker of his generation”, and thanked Mervyn King for his “unquestioned integrity” during his decade as governor.

It was widely expected that Paul Tucker, a deputy governor at the central bank, would succeed King. Carney had previously appeared to deny his interest in the job, saying he was “interested in who they pick” for the next Bank of England governor but would not be taking over from King himself.

Carney will leave the Bank of Canada on June 1, only four years into his seven-year term. He will stand down from his position at the Bank of England after five years, despite being awarded an eight-year term, to align his departure with the end of his role as chairman of the Financial Stability Board.

“I am honoured to accept this important and demanding role, and to succeed Sir Mervyn King, with whom I have worked closely over these past five years and from whom I learned so much,” he said. “This is a critical time for the British, European and global economies; a decisive period for reform of the global financial system, including its leading financial centre, the City of London; and a crucial point in the Bank of England’s history as it accepts vital new responsibilities.”

David Blanchflower, a member of the Bank of England’s Monetary Policy Committee (MPC) between 2006 and 2009, said he was surprised by the decision, but was quick to praise the Canadian’s appointment. “It’s quite clear that he is by far and away the most qualified person. This is a triumph; it’s a really great appointment,” he said. “Presumably he’s going to come into the Bank of England with a new broom and sweep clean. All the other candidates are to some degree implicated by the failings during the crisis, and Canada seems to have done pretty well under Carney’s guidance.”

 

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