According to reports, British Chancellor of the Exchequer Philip Hammond fired a gun for the successor of Bank of England Governor Carney, but concerns about Brexit may keep some potential contenders on the sidelines.
Unlike other countries, the UK will openly invite global candidates to compete in the position of the Bank of England Governor. As the first non-British central bank governor, the current term of President Carney is considered a successful example of British financial diplomacy. On February 1 next year, Carney will leave his term of office for more than six years, when the position will be vacant. Before serving as governor of the Bank of England, Carney served as the Governor of the Bank of Canada for five years.
Hammond at the International last weekMonetary FundThe organization (IMF) said to the media at the semi-annual meeting that the process of identifying new presidents has been "started." Carney’s successor is likely to be one of the thousands of delegates attending the meeting.
But the Brexit is increasing in the short term.Long andIn addition, the regulatory relationship between the EU and the EU has brought obvious challenges. In addition, the next Bank of England governor has to face a severely divided domestic political situation. "The political debate surrounding the Brexit may prevent some candidates from applying for the position because the Bank of England governor will inevitably be involved," Hammond said in Washington.
Since being the governor of the Bank of England in July 2013, Carney has twice postponed his departure in October 2016 and September 2018 to help the UK prepare for Brexit. When Carney delayed his second term, the process of finding a successor had begun, and Hammond made it clear that he was willing to accept the next central bank governor from other countries.
This time, Carney said that he did not intend to remain as the governor of the Bank of England, even though the Brexit deadline was recently postponed to October 31.
Formal job advertisements may appear soon, one of the important criteria being the ability to effectively represent the UK in international forums such as the IMF.
Well-known people on the international stage may have advantages, such as former Indian central bank governor Rajan, who had a public debate with the president of Kani and other central banks at the IMF. He did not comment when asked if Rajan would consider returning to a positive policy-making role. Last year, he said that he would not apply for this position, but his attitude was slightly ambiguous if he would do it directly if he was directly approached by the British government like Carney.
The lack of in-depth knowledge of the UK's economic details and more domestic-oriented financial institutions is not necessarily a stumbling block. The structure of the Bank of England may make up for this deficiency. The central bank has four deputy governors and one chief economist responsible for the difference.currencyPolicy and regulatory areas. Despite this, it is still a question mark that Hammond’s candidate can go. The central bank governor must obtain official approval from Prime Minister Teresa May and Queen Elizabeth.
Given that the UK is struggling to retreat from Europe, it may be difficult for an EU person to be the governor of the Bank of England – although many of the people working for the Bank of England are from continental Europe.
There is also domestic competition. Andrew Bailey, the former deputy governor of the Bank of England and current CEO of the Financial Conduct Authority (FCA), is widely regarded as a strong contender because the central bank governor’s duties involve at least the supervision of the London financial center. There are as many monetary policy regulations.
Several current deputy governors of the Bank of England and chief economist Andy Haldane are also potential competitors.
In any case, Hammond hopes that the applicant will have a better idea of which form of Brexit will be dealt with before the final decision is made. “I hope this can be resolved before entering the narrow list of candidates,” he said.
(Article source: Global Forex Network)