UK Treasury Preparing To Look For Replacement Of Mark Carney

    Photo by Bank of England via Flickr

    The Treasury is making a draft of the job advert in search for the next governor of the Bank of England before the departure of Mark Carney from his current role that is set next year.

    Carney is set to step down at the end of June 2019 after serving for six years in the position. According to the Press Association, the advertisement seeking for his replacement will be published on the public appointments website of the government and also in a financial publication.

    A spokesperson from the UK Treasury stated: “We will begin recruitment for the next Governor of the Bank of England in due course.” However, he said that would not comment on a timescale for the said search.

    The recruitment will probably start in the next couple of months, in line with the practice when Carney was appointed to the position.

    The rumoured contenders for the said position include Andrew Bailey, the head of the Financial Conduct Authority, Sharon White, the chief of Ofcom, and Raghuram Rajan, the former chief economist of the International Monetary Fund.

    Carney also served as the governor of the Bank of Canada. In 2013, he took over the Bank of England position from Mervyn King.

    In August 2016, he reduced the interest rates for the first time in a period of more than seven years to a record low of 0.25 percent. It came months after the EU referendum in an attempt to support the economy after the Brexit vote.

    This month, the monetary policy committee of the bank voted to increase the interest rates for the first time since May 2007 to 0.75 percent. It is considered the highest level in the past 10 years.

    The bank was also able to upgrade its growth expectations for the UK economy. The GDP growth is anticipated to increase to 1.8 per cent, which is slightly above the 1.7 percent that was forecasted earlier in the year.

    The successor of Carney will face the challenge of guiding the banks in the UK and the British economy through the process of Brexit.

    Last week, the governor warned that the probability of no deal Brexit is “uncomfortably high,” as the pound dropped to an 11-week low against the dollar.