Photo: World Economic Forum
Nomura’s Philip Rush weighs in on the Bank of England’s choice for chief, Mark Carney, the current head of the Bank of Canada:In a surprisingly welcome decision, Chancellor Osborne has announced that Mark Carney will become Governor of the Bank of England effective after Mervyn King’s term ends in June 2013. This came as a surprise only because he had appeared to repeatedly rule himself out of the role, rather than him being in any way under-qualified. His central banking experience comprises two stints at the Bank of Canada, including his current Governorship, which he will be giving up to join the BoE. Mark Carney also serves as Chairman of the Financial Stability Board, which will have provided greater exposure to the global agenda that is inextricably linked to the UK’s domestic one. Moreover, his 13 years at Goldman Sachs included a stint as co-head of sovereign risk. With the euro area‟s sovereign debt crisis still raging on the UK‟s borders, such familiarity with the market perspective could be invaluable. The only potential negatives we see are ones of perception rather than substance. Specifically, how the proliferation of ex-Goldman’s bankers assuming senior policymaking positions around the world may feed popular mistrust, and how Mr Carney’s willingness to leave previous posts may reflect a lack of commitment to each job.
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