Mark Carney to help UK economy in new Bank of England Governor role

Canadian banker Mark Carney will replace Sir Mervyn King to take on “where the challenge is greatest"

15:41 27 November 2012

Chancellor George Osborne has made the announcement that Mark Carney, a former Canadian central banker, will follow in the footsteps of Sir Mervyn King and become the new Governor of the Bank of England.

 

Mr. Carney will be the first foreign body to fulfil the role as Bank of England Governor in over three centuries. He is expected to help rescue the UK’s economy at a time when there is economic instability, as well as there being alterations made with regards to the Bank.

 

Chancellor Osborne has expressed in a statement that Mr. Carney would be the man for the job, as he can bring “strong leadership and external experience the Bank needs”.

 

He said: “Mr Carney is unique amongst the potential candidates in combining long experience of central banking, huge international credibility in economics, deep expertise in financial regulation and a first-hand experience of private sector financial institutions”.

 

The Canadian will serve a five-year term that is fixed, and not eight years as expected. The news of his new role comes as a surprise to some, as months earlier reports claimed that Mr. Carney was not interested in being the Governor of the Bank of England.

 

Mr. Carney seems to be accepting the new challenge gladly, and he said at a news conference; “I am going to where the challenge is greatest”. Whether this is a reflection on the UK’s current economic state or a personal admission, it is not clear.

 

It was thought by many that the Deputy Governor of the Bank of England, Paul Tucker, would take up the position. Sir Mervyn supports the decision made as he reportedly refers to Mr. Carney as being an “outstanding choice”, and that he “he represents a new generation of leadership for the Bank of England”.

 

It is understood that Chancellor Osborne has spoken highly of Sir Mervyn with regards to his time spent as the Bank of England Governor, as Sir Mervyn held the position when there was economic upheaval, including policy changes.

 

Mr. Carney will be involved with the Monetary Policy Committee as well as be chair to the Financial Policy Committee. As the new Governor he will hold one of the most powerful unelected positions in Britain.

 

Mr. Carney is chair to the Financial Stability Board at the G20, and spent more than ten years working for the US company, Goldman Sachs.