Chancellor George Osborne shocked the House of Commons in November when he appointed Bank of Canada governor Mark Carney as the next Bank of England governor.
Since his appointment politicians and economists have been scrutinising his every utterance to work out what kind of governor he will be.
With control over monetary policy, financial regulation and economic stability, he will be the most powerful unelected official in Britain.
Tomorrow morning, for the first time since his appointment, he will face a grilling from MPs in the Treasury select committee.
The TSC has no formal power of veto of the governor but a critical response from the influential body would be damaging to Carney.
Here are 10 questions TSC chair Andrew Tyrie and his colleagues should ask him:
1. Should the Bank of England target GDP growth?
In December, Carney gave a speech in Toronto that said in “exceptional” circumstances central banks should target growth instead of inflation. The Bank of England currently has a 2 per cent inflation target and the governor must write to the chancellor if he misses it by more than 1 per cent.
2. Can the Bank do more than the funding for lending scheme to boost the economy?
The funding for lending scheme has been criticised by the TSC and business secretary Vince Cable for not increasing SME lending enough. FSA chairman Lord Adair Turner argues that the Bank can print money to fund Government spending. Monetary policy committee member Adam Posen believes quantitative easing money should be invested in areas such as housing and not just gilts.
3. Should the Bank launch another round of quantitative easing?
The Bank has launched £375bn worth of QE since 2009, with some MPC members calling for further rounds. Concerns have been raised about QE creating a bubble in gilts, hitting pensioners and storing up trouble for the future when it needs to be wound down.
4. How do you justify your £874,000 pay package?
Carney will receive £480,000 in basic pay, £250,000 in housing allowance and pension contributions worth £144,000, along with free health and dental insurance and a chauffeur-driven car. Current governor Sir Mervyn King is paid £304,000 alongside an incredibly generous Bank pension scheme that is now closed.
5. Will you hold too much power as governor?
With such a wide array of powers the new role has been called the most powerful central banking job in the world. The TSC will be keen to find out how Carney will delegate powers and manage such a huge portfolio.
6. Should the Bank be made more accountable?
The passage of the Financial Services bill through parliament saw fierce debate on the accountability of the Bank. The TSC called for the court of the Bank to be an expert supervisory board with the power to publish report and for the chancellor to have powers to direct the Bank in times of emergency.
7. How will you manage the new regulators, the FCA and PRA?
Carney will have ultimate control over the Financial Conduct Authority and Prudential Regulation Authority, which come into being in April. He will have a major role in setting the tone of the new regulators.
8. Do the Government’s banking reforms go far enough?
The banking reform bill, published this week, ring-fences banks’ retail arms from their investment divisions. The rules do not come into force until 2019. Carney plans to leave the Bank in 2018.
9. What will be the key threat to UK financial stability over the next five years?
The Financial Policy Committee, chaired by the governor, will have the job of preventing the next financial crisis. It will have a range of significant powers such as the ability to cap loan to value and loan to income levels on mortgages.
10. How will you be able to understand the UK economy coming from Canada?
Carney has a British wife and British children but has lived and worked in Canada for the last 10 years. There will be questions about how easily he can adapt to his new surroundings.
Samuel Dale is political reporter at Money Marketing