Head of Central Bank of Canada, Mark Carney, was surprisingly appointed to take the lead of the Bank of England (BoE) from Mervyn King, according to Bloomberg.
King, aged 64 years, will retire from the post of governor in the middle of next year after two 5-year terms.
Carney, aged 47, will take over the 318-year-old institution, which is preparing to become the most powerful central bank in the world, given that the new powers will entrust it with the oversight of the financial system to prevent another crisis.
He will also coordinate the Monetary Policy Committee to implement unconventional tools in order to nurture the economic recovery and to protect the credibility of the fight against inflation, gained with its independence in 1997.
Carney now leads the G20 Financial Stability Board. He worked at Goldman Sachs for more than a decade before becoming the leader of the monetary policy in 2003 and taking over the Bank of Canada top position in 2008.
The decision surprised all analysts who saw as the main favorite Paul Tucker, deputy governor of the BoE on monetary policy.
Carney is a supporter of stronger regulations for credit institutions around the world, having the opportunity to collide frequently with executives from banks, demanding them to grow capital holdings. His appointment was announced today by George Osborne in Parliament.
“His resume is excellent. He is clearly a central bank leader with a very good experience and his appointment was made due to his experience at the International Bank of Settlements. He will have to do a lot of work to become familiar with the circumstances in the UK,” said Shamik Dhar, former BoE economist, currently chief investment strategist at Aviva Investors.
Sterling Pound erased all losses recorded in relation to the U.S. dollar. British currency is trading at$1.6026 just before 4 PM ( GMT), same as yesterday. Government bonds with a 10-year maturity remained high with a yield of 1.84%.
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