Interest in UK bank head


by AMIT ROY AFTER Mark Carney, who is Canadian, will the next governor of the Bank of England (BoE) also be a foreigner? Somehow, I don’t think the chancellor of the exchequer, Philip Hammond, who will make the appointment, will take such a risk. And yet, the Financial Times (FT) reckons Raghuram Rajan, the 56-year-old former governor of the Reserve Bank of India who has returned to his previous life as a professor at the Booth Business School at Chicago University, is a serious contender. So is Baroness Shriti Vadera, who served as a “no-nonsense” treasury minister under Gordon Brown and is currently chairman of Santander UK. The FT described the job as “the most powerful appointed position in British public life” but it is also something of a poisoned chalice. Every time Carney warned of the economic consequences of a hard Brexit, he was subjected to virulent abuse by Brextremists. For example, Tory MP Jacob Rees-Mogg called Carney a “second-tier Canadian politician” who “failed” to get a job at home. Last weekend’s The Big Read slot in the FT said that after having his term extended twice, 54-year-old Carney “will definitely stand down at the end of January 2020”. His replacement will be announced in October this year. “If the bookies are any guide, Andrew Bailey, chief executive of the Financial Conduct Authority, is the favourite, but his odds are drifting out a little, while Raghuram Rajan, the urbane Chicago economics professor and former governor of the Reserve Bank of India, is running him a close second,” the paper revealed. This prompted an FT reader, Tim Young, to argue Rajan would be a better bet than Bailey: “The difference in character between Raghuram Rajan and Andrew Bailey is exemplified by their attitude to criticism of US central bank policy…

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