Mark Carney a bold choice

This is an edited version of an editorial that appeared this week in the London Telegraph: The appointment of Mark Carney to succeed Sir Mervyn King as governor of the Bank of England is as daring as it is surprising. The 47-year-old governor of the Bank of Canada has an enviable reputation as a central banker and, in his role as chairman of the Financial Stability Board for the G20 countries, a high international profile. After the Federal Reserve’s Ben Bernanke and Mario Draghi at the European Central Bank, he is the world’s best-known central bank governor. On his watch, Canada has weathered the economic storm of the past four years far more comfortably than most other major economies. Carney’s background is as an investment banker with Goldman Sachs and he has worked for them in London. He will know the City well and should, in return, command its respect. His chairmanship of the Financial Stability Board not only gives him unique insights into the international banking regulations that will have an increasing impact on the Bank of England but also puts him at the heart of global banking’s enormously complex reform agenda. He also has the benefit of being untainted by the policy mistakes that led to the financial crash in this country — none of the other serious contenders for the job could claim that. At the same time, Carney will not be part of the groupthink for which the Bank of England has been much criticized.

Most of all, this appointment sends out a powerful message. This country is a world leader in financial services — arguably the global leader — and wants the best in the world to run its central bank. This is a country that has the confidence to be open to outsiders in the same way that it is open to trade and finance. This is an interesting choice, and a bold one.