Belfast Telegraph

New governor straight into thick of it at Threadneedle Street

By Russell Lynch

Mark Carney will hit the ground running at the Bank of England today as he takes on "one of the toughest central banking jobs in the world".

The former Bank of Canada governor and Goldman Sachs banker will be thrust straight into the policy maelstrom at Threadneedle Street as he attends a pre-briefing for the bank's monetary policy committee on his first morning, before chairing a full meeting of the MPC on Wednesday. The Canadian succeeds Sir Mervyn King to become the first foreign governor in the Bank's 319-year history and the world's most powerful central banker, following the BoE's assumption of new responsibilities for financial stability and regulation as well as setting interest rates.

The Chancellor, George Osborne, tempted Mr Carney, who initially refused the job, with a total package of £874,000 – six times more than David Cameron's £142,500 salary.

Mr Carney is not expected to make any public pronouncements until August, when he could employ forward guidance on interest rates, subject to inflation staying under control.

The new governor is thought to favour more quantitative easing to help the gradually recovering UK economy to reach "escape velocity", although six of the nine-member MPC are currently blocking more stimuli.

Experts said Mr Carney may spring a surprise as soon as Thursday with a statement on recent market turmoil, although the MPC is expected to hold interest rates at their record low 0.5%.

Belfast Telegraph

Popular

From Belfast Telegraph