With Mike Carney due to step down as Bank of England (BoE) governor on 31 January next year, the hunt for a new chief is on. And speculations have been rife about former Reserve Bank of India (RBI) chief Raghuram Rajan being one of the top contenders for the post.
Rajan is “moving up in the race to be the next Bank of England governor”, Bloomberg had reported last month. “Rajan is the only outsider among the top contenders in the running to replace Mark Carney, according to bookmakers and economists who follow the 325-year-old institution,” the report said.
Here’s all that you need to know in context of the appointment of the new BoE governor:
— The UK government had formally launched its hunt for a new Bank of England Governor in April this year.
— UK Chancellor Philip Hammond, the Cabinet minister in charge of the appointment, had said that it was important the person who took over from current governor is equally internationally respected. “It is very important to have someone, not only who can do a first-class job at home, but someone who commands respect in the international arena,” said Hammond.
— The UK Treasury hired headhunting firm Sapphire Partners to oversee the applications process. The deadline for applications was 5 June, with interviews to be held in London in the following weeks and months.
— The post comes with an eight-year term, and the successful candidate will be paid an annual salary of 480,000 pounds (around Rs 4.3 crore in India today).
— The successful applicant would take up the post in February 2020 after Carney leaves on 31 January.
— The appointment will be finalised by Chancellor of the Exchequer Philip Hammond around October this year.
— The assessment panel includes Treasury officials Tom Scholar and Charles Roxburgh, the chair of the BOE’s court Bradley Fried, and Kate Barker, a former BOE policy maker.
— Bbookmakers and economists see Andrew Bailey, chief executive of the Financial Conduct Authority, as the most likely to take Mike Carney’s place.
— Besides Rajan, Sharon White, a former Treasury official and head of the media regulator Ofcom, is among the top contenders.
— Former BoE deputy governor and director of the London School of Economics Minouche Shafik is also in the running, as is Shriti Vadera, the current chairman of Santander Plc.
— Mike Carney, who took up the post from Canada in July 2013, had agreed to extend his tenure twice in response to the ongoing uncertainties around Brexit votes in the UK Parliament. The former head of Canada’s Central Bank was originally due to leave last year.