Shock at The Bank of England - New Governor Announced

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Bank of Canada Governor Mark Carney was unexpectedly appointed as the next head of the Bank of England, succeeding Mervyn King.

Bloomberg reports that Carney, 47, takes the helm of a 318-year-old institution that’s preparing to become the most powerful central bank in the world as it absorbs broad new powers to oversee the financial system and prevent another crisis. He’ll also have to guide the Monetary Policy Committee as it implements unconventional tools to stoke a recovery and battles to protect the inflation-fighting credibility earned since it won independence in 1997.

Carney is currently head of the Group of 20’s Financial Stability Board. He worked at Goldman Sachs Group Inc. for more than a decade before becoming a policy maker in 2003, and took over as chief of Canada’s central bank in 2008. He has pushed for tougher regulations for global lenders and clashed with banking executives over new rules requiring them to hold more capital. His appointment was announced by Chancellor of the Exchequer George Osborne in a statement to Parliament today.

'His CV looks terrific', said Shamik Dhar, a former Bank of England economist and head of investment strategy at Aviva Investors, which oversees $409bn in London. 'He’s obviously an extremely good experienced leader of a central bank and is a very credible appointment. Given his background with BIS it makes it internationally credible. He’ll have quite a big upfront job getting familiar with the circumstances in the UK. But he’s not going to do badly'.

Hit the link below to access the complete Bloomberg article:

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