Mark Carney, Bank of England Governor is ‘not familiar with the UK economy’, says former rate-setter

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governor of The Bank of England, Mark Carney
The Canadian-born governor of The Bank of England, Mark Carney

A former Bank of England rate-setter has today launched a scathing attack on Mark Carney, the current Bank of England governor, stating that as a foreigner he was not familiar with the UK economy.

Andrew Sentance, who was a member of the Bank of England rate-setting board, the Monetary Policy Committee from 2006 to 2011, says that Carney’s successor ‘cannot be ‘jetted in from overseas’ and should be someone from the UK.

The Canadian-born governor who has been leading the Bank of England since 2013, announced three years into the job that he would be stepping down from his role in June 2019.  Mr Carney made history when his appointment made him the first foreigner governor in the Bank of England’s 323 year history.

In his remarks, Mr Sentance accused Mark Carney of being “timid”, and that his “lack of confidence with raising interest rates has been due to the fact he’s not familiar with the UK economy”.

He also said, “I don’t think we should appoint somebody else from overseas”.

“I don’t think having people who aren’t familiar with the UK economy jetted in would be a good thing.”

Since the announcement of his departure, there has been much speculation on who will take over from Carney, with Andrew Bailey, the current head of the Financial Conduct Authority seen as the bookies favourite. Last month the online bookmaker Betway announced that it had to suspend betting on the next governor of the Bank after what they referred to as, “an influx of money on Andrew Bailey”.

Meanwhile, the UK chancellor, Phillip Hammond, is reportedly preparing to start the process of selecting the next governor of the Bank of the England to replace Mark Carney when he steps down in 2019. The Treasury is expected to publish an advert for the job in July 2018, and to make an appointment by end of year.

The Chancellor has also confirmed that he has begun looking for candidates in forums such as the International Momentary Fund, meaning the next governor may well be another foreigner.  This is because the Treasury is focused on opening competition for the post, and seeking applications from well qualified candidates, regardless of their nationality or gender.

Mr Hammond said, “The formal process has not yet started but I, and many other people I am sure, may have cast their eye around various rooms to see if any likely looking candidates hove into view”.