New Bank of England governor Mark Carney faces MP grilling

 
p42 p43 RNPS IMAGES OF THE YEAR 2012 - Bank of Canada Governor Mark Carney laughs during a news conference in Ottawa November 26, 2012. Carney will take over the reins as Governor of the Bank of England next year, British finance minister George Osborne told parliament on Monday, announcing a surprise choice to replace outgoing Bank of England Governor Mervyn King. REUTERS/Chris Wattie
REUTERS/Chris Wattie
7 February 2013

Mark Carney, the governor-designate of the Bank of England, is facing his first grilling by MPs at Westminster.

Mr Carney, currently the Governor of the Bank of Canada, will have his credentials for the stewardship of the UK economy tested when he appears before the Commons Treasury Committee today.

The personal choice of Chancellor George Osborne, who described him as the "the outstanding central banker of his generation", he is not due to take up his new appointment until July.

When he does so, in succession to Sir Mervyn King, he will become the first foreigner in the Bank's 319-year history to hold the post.

Mr Osborne was impressed by his record in steering Canada through the global financial crash largely unscathed and his appointment was broadly welcomed in the City.

However recent comments have attracted intense scrutiny, not least a suggestion that monetary policy - interest rates and quantitative easing - could target economic growth in "exceptional" times.

Committee chairman Andrew Tyrie has said today's hearing will cover not only his professional competence and personal independence, but also his "experience, leadership qualities and views on the need to strengthen the internal governance and accountability of the Bank to Parliament and to the public".

"Such a hearing will better enable Parliament and the public to have confidence in his appointment," Mr Tyrie said when he announced details last year.

"But the benefits will flow both ways. Approval from the Treasury Committee would also provide the new Governor with greater authority and independence from the day to day pressures of politics and politicians which will come with his enhanced role."

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