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Carney shakes up Bank of England leadership

The Treasury has approved a major shake-up of the Bank of England senior leadership as governor Mark Carney makes his mark on the organisation.

Chancellor George Osborne has unveiled two new Bank of England deputy governors and a chairman of the court.

Ex-Whitbread and Bunzl chairman Anthony Habgood will replace Sir David Lees as chairman of court from 1 July.

On the same day ex-Goldman Sachs banker Ben Broadbent will step up from external monetary policy committee member to replace Charlie Bean as deputy governor for monetary policy.

International Monetary Fund deputy managing director Nemat Shafik will also take up the newly created post of deputy governor for markets and banking from 1 August.

Shafik will become only the second ever female deputy governor and the only woman to sit on the monetary policy committee when she replaces executive director of markets Paul Fisher.

She will be responsible for the design and execution of an eventual exit from quantitative easing by the MPC. The new position will also oversee a range of role including a review of the Bank’s market intelligence functions and monetary framework. 

Shafik will represent the Bank at international bodies such as the G7 and IMF. Shafik will also sit on the Financial Policy Committee, the Bank’s Court of Directors and the board of the Prudential Regulation Authority.

The Treasury says the appointment is a central plank of a package of structural and other changes to be announced by Carney as part of the Bank’s strategic plan.

Treasury select committe chairman Andrew Tyrie has hit out at the “Byzantine” structure of Bank of England governance and Carney is believed to be shocked at what he found when he took up the job last July.

Osborne says: “I am delighted to announce the appointment of three such highly qualified and experienced people to join the Bank’s already excellent executive team.

“Their impressive experience of business, economics and international finance will strengthen and diversify the Bank’s top team and enable them to continue to face Britain’s ongoing economic challenges from a position of strength.

Carney says: “With a diverse combination of skills and experience, these appointments result in a well-rounded senior management team at the Bank – one that will set the direction for an ambitious agenda of transformation for the institution and enable it to meet the challenges and opportunities it faces in maintaining monetary and financial stability.”

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