LONDON--Mark Carney, who currently runs Canada's central bank,
will be the next governor of the Bank of England, the British
government announced Monday, a surprise pick that underscores U.K.
officials' thirst for fresh blood at the powerful institution.
The bombshell announcement, which Chancellor of the Exchequer
George Osborne delivered to Parliament on Monday afternoon,
represents a major break from tradition in the U.K., which
traditionally has picked fixtures of the British establishment to
be governor. Mr. Carney beat out longtime Bank of England veteran
Paul Tucker for the job.
Mr. Carney will become the 120th governor of the Bank of England
just as it inherits sweeping new powers, making it one of the
world's most powerful central banks and boosting the governor's
status as one of the U.K.'s most powerful individuals. In addition
to setting interest rates and shepherding the U.K.'s monetary
policy, the central bank is slated to assume responsibility for
regulating the U.K.'s massive banking and financial system.
The new governor will have to confront a series of challenges.
The U.K. economy has flat-lined. The British banking system remains
fragile, with two top banks largely owned by taxpayers.
The 47-year-old Mr. Carney, who became governor of the Bank of
Canada in 2008, is a well-regarded central banker. He is chairman
of the Financial Stability Board, the group of central bankers and
top policymakers responsible for hammering out global agreements
meant to improve the stability of banks and the overall financial
system.
Mr. Carney is "the most qualified person in the world to be the
Bank of England's governor," Mr. Osborne said in announcing the
appointment. He is "acknowledged as the outstanding central banker
of his generation."
But Mr. Carney's odds of getting the job dipped when he
repeatedly said he wasn't interested in the job.
Mr. Osborne's announcement on Monday was the culmination of a
seven-week search process that got underway with the Treasury
placing a job advertisement in The Economist magazine. The search
drew applications from a wide variety of hopefuls. They ranged from
longshot publicity seekers, such as an editor with the U.K.'s Sun
tabloid newspaper, to longtime fixtures of the British
establishment, such as Adair Turner, the chairman of the Financial
Services Authority.
The governor-selection process has been overseen by a
four-person panel, made up of the three highest-ranking civil
servants in the Treasury and the chairman of the central bank's
supervisory body.
After interviewing a shortlist of candidates, the panel made
their recommendation to Mr. Osborne. He then made his decision
after consulting with Prime Minister David Cameron, a Conservative
Party colleague, as well as Deputy Prime Minister Nick Clegg, the
leader of the junior coalition partner, the Liberal Democrats.
Unlike in the past, the appointment is supposed to be for eight
years. But Mr. Osborne said that Mr. Carney will only serve five of
those years. The move to one, long period in charge of the
institution is designed to protect the governor from political
influence.
Write to David Enrich at David.Enrich@wsj.com; write to Jason
Douglas at Jason.Douglas@dowjones.com; write to Cassell Bryan-Low
at Cassell.Bryan-Low@wsj.com
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