Mark Carney steps into the breach

First non-Briton to lead the central bank.

New Statesman
Mark Carney. Credit: Getty Images.

Mark Carney has officially taken charge as the head of the Bank of England (BoE), replacing Sir Mervyn King. He becomes the first non-British to serve the central bank.

Prior to joining the BoE, Carney served as head of Bank of Canada.

Carney’s appointment comes at a time when stimulus programmes have been introduced to revitalise the economy and interest rates are at an all-time low. DeAnne Juliusm a former MPC member, told the BBC that “most sensible people realise that he can’t wave a magic wand and fix everything”.

She added: “It’s just possible that he could be lucky, he could be coming into this job at just the right moment because the economy is recovering, financial markets are strong. He's probably, as an outsider, the best person to change the culture in the Bank of England - something that's been needed for a while. So I’m quite optimistic.”

Carney, best known for his management of fiscal policy in Canada, also served at Goldman Sachs for 13 years before becoming head of the Bank of Canada.

Carney also served as deputy governor at the Bank of Canada and as chairman of the Financial Stability Board (FSB).

Carney will receive a salary of £480,000 per annum apart from an annual pension allowance of £144,000 and a housing allowance of £250,000 at the Bank of England.

King, who joined the bank as chief economist in 1991, served as governor of the bank for a decade.

The British Chancellor of Exchequer, who announced BoE new head last year, praised Carney as the outstanding central banker of his generation.

Meanwhile, the Bank of Canada has hired Stephen Poloz as its new head.