Outgoing Bank of England governor Sir Mervyn King is to be made a life peer.
Speaking at the annual Mansion House dinner last night, chancellor George Osborne thanked King for his “integrity, intelligence and patriotism”.
Osborne said: “I am delighted to be able to tell everyone here something you have known about for a few days.
“It has just been announced by Downing Street that the prime minister has recommended to Her Majesty the Queen that the governor be raised to the peerage, and Her Majesty has been graciously pleased to approve that. Lord King, we here today salute this worthy honour and thank you for your life of service to your country.”
King, who joined the Bank of England in 1990, is being replaced by former Bank of Canada governor Mark Carney on 1 July.