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Shock as Canada’s Carney made new BoE governor

The current Bank of Canada Governor Mark Carney has been unexpectedly announced as the next head of the Bank of England succeeding Mervyn King who steps down from the post in June next year as head of the 300 year old institution.

The 47 year old Canadian will lead the Bank as it prepares to become the world’s most powerful bank as it absorbs brand new powers to oversee the nation’s financial system and prevent another crisis. He’ll also have to guide the Monetary Policy Committee as it implements unconventional tools to stoke a recovery and battles to protect the inflation- fighting credibility earned since it won independence in 1997.

Chancellor George Osborne addressed parliament and hailed Carney for bringing strong leadership and external experience that the Bank of England needs. He added that the Canadian will apply for British citizenship.

“He is quite simply is the best and most experienced person in the world to be the next governor to the Bank of England,” Osborne said. “Mr. Carney will bring the fresh perspective needed.”

Mr Carney said that he was honoured ‘to accept this important and demanding role at a crucial time for the British, European and global economies.” He will serve out the remainder of his post as Governor of the Bank of Canada until May 2013.

“His CV looks terrific,” said Shamik Dhar, a former Bank of England economist and head of investment strategy at Aviva Investors, which oversees $409 billion in London. “He’s obviously an extremely good experienced leader of a central bank and is a very credible appointment. Given his background with BIS it makes it internationally credible. He’ll have quite a big upfront job getting familiar with the circumstances in the UK. But he’s not going to do badly.”

The Pound to Euro exchange rate is currently trading at 1.2352

The Pound to US Dollar exchange rate is currently trading at 1.6005

The Pound to Australian Dollar exchange rate is currently trading at 1.5330

The Euro to US Dollar exchange rate is currently trading at 1.2958

The Euro to Pound exchange rate is currently trading at 0.8095

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