The announcement came as a surprise, as Bank deputy governor Paul Tucker was seen as the front runner for the governor job. Other candidates included FSA chairman Adair Turner, John Vickers, who led the government’s recent review into the banks, and Santander UK chairman Terry Burns.
Carney will replace King as the Bank from 1 July 2013, chancellor George Osborne announced on Monday. He has indicated that he intends to serve for five years.
Osborne said: “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 has done a brilliant job for the Canadian economy as its central bank governor, avoiding big bailouts and securing growth. I look forward to working with Mark as we continue to rebalance our economy, deal with our debts and equip Britain to succeed in the global race.”
Carney took up his role at the Bank of Canada on 1 February 2008. He is also the current chairman of the Financial Stability Board and a member of the board of directors at the Bank of International Settlements.
Prior to leading the Canadian central bank, he was the country’s senior associate deputy minister of finance from 2004 to 2007 and deputy governor of the Bank of Canada from 2003 to 2004. He also spent 13 years with Goldman Sachs.
Charlie Bean has been re-appointed as deputy governor for monetary stability at the Bank. He agreed to stay for a year after King’s departure to watch over the transition to the new governor and oversee the Bank’s extension of responsibilities. Bean will stand down on 1 July 2014.
Osborne said: “Charlie Bean is a world class macroeconomist and a powerful voice on the Monetary Policy Committee. I am most grateful to him for his continuing service.”
