Carney to replace King as Bank of England governor

Mark Carney 480

Mark Carney has been named as the next governor of the Bank of England and will replace Mervyn King when he steps down later next year.

Carney, the governor of the Bank of Canada, was named as governor by chancellor George Osborne as he read a statement to the House of Commons.

George Osborne says: “Mark Carney is the outstanding candidate to be governor of the Bank of England and help steer Britain through these difficult economic times.

“He is quite simply the best, most experienced and most qualified person in the world to do the job.”

He adds: “He has done a brilliant job for the Canadian economy as its central bank governor, avoiding big bail outs and securing growth.

“He has been chosen by the rest of the world to be the chair of the international body, the Financial Stability Board, charged with strengthening global financial regulation after the financial crisis.”

The Bank of Canada governor was a surprise appointment despite having been linked with the job for a number of months. He beat deputy governor Paul Tucker, whom many thought would be appointed as King’s successor. Other people linked with the job, the first time it had been advertised publically, included former top civil servant Gus O’Donnell and Goldman Sachs Asset Managment chairman Jim O’Neill.

Carney says: “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.

“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.”

Carney was appointed Bank of Canada governor in February 2008, first joining the central bank in 2003 as a deputy governor following a 13-year career at Goldman Sachs.

Osborne also confirmed deputy governor Charlie Bean would remain for an additional year to oversee the extension of the bank’s responsibilities to include financial stability and the transition to the new governor.