Bank of England governor – Treasury urged to hire a woman

MP’s have said that when Mark Carney is replaced, it needs to be by a woman to tackle gender imbalance.

Rachel Reeves, Labour MP, has said that the Bank has not done enough when it comes to recruiting, training and promoting talented women. The treasury needs to work a lot harder to find a suitable woman to succeed Mr Carney as governor of the Bank of England. This statement came from two of parliaments most influential select committee chairs.

Independent MP Frank Field, and Labour MP Rachel reeves agree that the central bank needs to make use of the appointment of a new governor to reach out beyond the City of London HQ. By doing this they will learn to better understand the effects of policies in the poorest societies as well as on regional businesses.

The appointment of the new governor is expected to be announced by Philip Hammond in early 2019, to take up the post in 2020. Mr Carney agreed to extend his term of office by one year so that his leaving did not clash with Britain’s scheduled departure from the EU in 2019. The chancellor must find a successor to Mr Carney in the spring or summer of 2019.

Mr Hammond is understood to be looking for a person who has Mr Carney’s experience, and who can help to maintain the international standing of the UK. Mr Carney has led the G20’s Financial Stability Board since 2011. He has also chaired two committees at the BIS (Bank of International Settlements).

Mr Carney has been accused of failing to increase the role of women at the top of the organisation, particularly after the gender pay gap increased last year.

Ms Reeves stated that although we gave had two women as Prime Ministers, as yet there have never been any women chancellors or Bank governors.

Unfortunately it seems that the Bank has simply not done enough to recruit and train talented women. Neither had they done enough to promote women. Much more is needed to promote a generation of women economists who are suitable for the job.

Mr Field stated that the Bank urgently needed to tackle the imbalance which is at the top of the organisation. This is particularly true of the MPC which has only one woman among the nine members.

Mr Field agrees that Britain will need a person with a deep knowledge of the economy and the people in the wake of Brexit. While many people at the top of their organisations are familiar with algebraic equations, fewer are knowledgeable about the effects of policies on poorer societies.

Mr Blanchflower, a member of the committee during the 2008 financial crash agreed with Mr Field that an understanding of the UK economy was essential. He suggested that the treasury approach former MPC member Rachel Lomax, 73, for the position. He greed that the job was a ‘poison chalice’ and all outsiders have a better job than Mr Carney. There are strong grounds, he went on to say, for reducing the MPC by half, while paying them more.

Other potential candidates for the new position are:

Andrew Bailey, 59, Chief Executive, Financial Conduct Authority

Sir Jon Cuncliffe, 65, Deputy governor, Bank of England

Dame Nemat Shafik, 56, Director London School of Economics

Andy Haldane, 51, Chief Economist, Bank of England

Shriti Vadera, 56, Chair, Santander

Ben Broadbent, 53, Deputy governor, Bank of England

Janet Yellen, 72,Brookings Institution in Washington

Agustín Carstens, 60, General Manager, BIS

Raghuram Rajan, 55, Professor of Finance, University of Chicago School of Business

 

 

 

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