TORONTO – He’s certainly not a sir or a knight, but our own Bank of Canada Governor Mark Carney is heading across the pond to take the reins of England’s identical posting.
As Finance Minister Jim Flaherty sang Carney’s praises in Ottawa at a press conference announcing his July 2013 leave, British counterparts named Carney as the Bank of England’s new governor, which came as a shock for British media.
He’s the first non-British Governor of the Bank of England in the position’s history dating back to 1694, after all. And he beat out homegrown competitors including a deputy governor.
UK’s Chancellor George Osborne stunned British news outlets Monday with his appointment, as most pundits suspected the job would go to deputy governor Paul Tucker.
Carney is set to take on his new posting in July 2013, and he’ll serve as BoE governor for five years until 2018.
Carney, through the UK’s eyes
“Fresh perspective.”
“Invaluable experience.”
“Strong leadership.”
That’s only a handful of the accolades thrown Carney’s way by British officials, editors and spectators.
London’s Gerard Lyons, chief economist and head of global research at Standard Chartered Bank threw his support behind Carney.
“My responsibility was to get the best for Britain and with Mark Carney, we’ve got that,” Osborne told the House of Commons in a 40-minute meeting.
“He will bring a fresh perspective. He has got what it takes to help bring families and businesses through these incredibly challenging economic times,” Osborne said.
The Guardian, for its part, live-blogged the announcement, and response from Commons officials.
The prestigious outlet’s economics editor told the forum:
While some were skeptical in offering their blessing, others noted Carney walked Canada through the world’s economic crisis in 2008, and that Canada fared better than the UK.
“He represents a new generation of leadership for the Bank of England, and is an outstanding choice to succeed me,” Sir Mervyn King, the current BoE governor said.
“Since Mark became Governor of the Bank of Canada, I have worked closely with him and admired his contributions to the world of central banking, in which he is widely respected.”
According to the Daily Mail, the job comes with a salary of over £300,000, along with a generous relocation and accommodation package.
The newspaper reports that Carney will apply for British citizenship, but it’s not a job requirement.
Aside from dollars and cents, the job is a big one, the Birmingham Post notes.
“The job is considered to be one of the most powerful in Britain, with the Bank of England taking on extra responsibilities for banking supervision as part of an overhaul of financial regulation following the economic crisis,” its report says.
Carney will be in charge of setting interest rates, regulating banks and financial companies and heading a committee tasked with spotting and keeping away crises.
Carney in Canada
Back in Canada, Flaherty called Carney’s departure a bittersweet moment.
“I am proud of the bank’s contribution to the resilience of the Canadian economy throughout an unprecedented period of global turmoil,” Flaherty said in Ottawa.
Carney said he has a tough job ahead.
“The five-year term is the opportunity to see through the path of that reform, to see through the transition and the rebalancing of the U.K. economy and also to relaunch the Bank of England with its much expanded and vital responsibilities.”
Carney was appointed the eighth governor of the Bank of Canada in February 2008. He will stay on at Canada’s central bank until June 1 and move to his new job on July 1.
– With files from the Canadian Press
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