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Government kicks off search for new Bank of England governor as Carney prepares to step down

Chancellor praises Mark Carney’s ‘steady hand’ as he fires starting gun on recruitment process 

Ben Chapman
Wednesday 24 April 2019 08:16 BST
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Chancellor Phillip Hammond discusses replacing Mark Carney

The government kicked off its search for a new governor of the Bank of England to replace Mark Carney who will stand down next January.

Chancellor Phillip Hammond said it was “more important than ever” to find the right governor in today’s rapidly moving economy.

Mr Carney has already agreed to remain in the post for longer than planned in order to help steer the economy through the upheavals resulting from Brexit.

The chancellor praised Mr Carney’s “steady hand” in the role and said it was “vital” to find the right successor to secure the strength of Britain’s economy.

The new recruit will be paid £480,000 a year, the same as Mr Carney has received since taking up the role in 2013.

Interviews will be held over the summer with an appointment expected in the autumn. Among the leading candidates are Financial Conduct Authority chief Andrew Bailey, and BoE chief economist Andy Haldane and deputy governor Ben Broadbent.

Mr Hammond said: “Finding a candidate with the right skills and experience to lead the Bank of England is vital for ensuring the continuing strength of our economy and for maintaining the UK’s position as a leading global financial centre.”

The chancellor also paid tribute to Mr Carney’s leadership.

He said: “His steady hand has helped steer the UK economy through a challenging period and we are now seeing stable, low inflation and the fastest wage growth in over a decade.

“And under Mark’s leadership the Bank of England has been at the forefront of reforms to make our financial system safer and more accountable.”

Candidates must be able to commit to an eight-year term, rather then the five years that Mr Carney had agreed.

The governor chairs the Bank of England’s three central committees: the Monetary Policy Committee, which sets interest rates; the Financial Policy Committee, which monitors risks in the financial system; and the Prudential Regulation Authority, which regulates the biggest financial firms.

Critics have said the governor’s role has become too politicised in recent times, notably since the EU referendum in June 2016. Threadneedle Street has come under fire, particularly from Leave supporters, for its gloomy economic forecast in the wake of the Brexit vote.

Who are the runners and riders?

Andrew Bailey
A bank veteran and current head of the FCA, Mr Bailey is seen as a safe pair of hands. Before that he was deputy governor for Prudential Regulation and chief executive of the Prudential Regulation Authority. He has also worked at the Bank as chief cashier and head of the special resolution unit. Other roles include governor’s private secretary.

Andrew Haldane
Mr Haldane started his career at Threadneedle Street in 1989, and currently serves as chief economist. As well as being a member of the Monetary Policy Committee, he also chairs the government’s Industrial Strategy Council. He has authored around 200 articles and four books. With degrees in economics from Sheffield and Warwick universities, he would be one of the few Britons vying for the role who did not attend an Oxbridge institution.

Raghuram Rajan
As the ex-governor of the Reserve Bank of India, Mr Rajan is used to extreme political volatility, which Brexit is providing in plentiful amounts. Currently serving as professor of finance at Chicago Booth university, he also did a three-year stint as chief economist and research director at the International Monetary Fund. An outsider’s bet.

Shriti Vadera
The chairwoman of Santander UK, Ms Vadera was born in Uganda before her family fled the country in 1972 when Asians were expelled by Idi Amin. She arrived in the UK as a child, ended up studying politics, philosophy and economics at Oxford, and also did a stint at UBS Warburg.

Minouche Shafik
Nemat “Minouche” Shafik was the BoE’s deputy governor of markets and banking between 2014 and 2017. She was responsible for reshaping the bank’s operations and balance sheet, including risk management practices and leading the design and execution of quantitative easing by the MPC. Currently serving as director of the London School of Economics.

Sharon White
Perhaps the wildest card in the pack, Ms White has headed communications watchdog Ofcom since 2015. Before that, she was second permanent secretary at the Treasury, responsible for overseeing the public finances. She has also held roles at the Ministry of Justice and the Department for International Development, and has worked as a civil service adviser at the prime minister’s policy unit and in Washington DC as a senior economist at the World Bank.

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