Former RBI Governor Raghuram Rajan. (Bloomberg)
Former RBI Governor Raghuram Rajan. (Bloomberg)

Hunt for new Bank of England boss moves next stage, Raghuram Rajan seen among contenders

  • Economists see Andrew Bailey, CEO of the Financial Conduct Authority, as the most likely to take Mark Carney’s place
  • Former RBI governor Raghuram Rajan has also been linked to the role at Bank of England

Anyone vying to take Mark Carney’s place as Governor of the Bank of England is running out of time to submit their application.

Candidates have until 11 pm London time on Wednesday to send their materials to recruitment firm Sapphire Partners, according to the job listing. The Treasury is responsible for making the interviews and will take the final decision on the appointment.

The government’s priorities when it comes to who should be the next BOE governor could change drastically in the coming months. The applications close just two days before Theresa May is due to step down as prime minister, and her successor will likely replace the current Treasury head Philip Hammond. A decision on the BOE role is due in October.

For now, bookmakers and economists see Andrew Bailey, chief executive of the Financial Conduct Authority, as the most likely to take Carney’s place. Former IMF chief economist and Reserve Bank of India (RBI) governor Raghuram Rajan has also been linked to the role. Hammond has emphasized that the next governor should be “someone who commands respect in the international arena."

The new BOE governor will oversee monetary policy and financial stability as Britain disentangles itself from the European Union, its largest trading partner. Carney has come under criticism from Brexit-supporting politicians for being too gloomy about Britain’s prospects outside the bloc.

Sapphire Partners specializes in gender diversity, and May encouraged women to apply for the role. Sharon White, a former Treasury official and head of the media regulator Ofcom, is among the top contenders. Former BOE deputy governor and director of the London School of Economics Minouche Shafik is also in the running, as is Shriti Vadera, the current chairman of Santander Plc.

The successful applicant would take up the post in February after Carney leaves on Jan. 31. It’s an eight-year term, and the successful candidate will be paid an annual salary of 480,000 pounds ($608,784). The assessment panel includes Treasury officials Tom Scholar and Charles Roxburgh, the chair of the BOE’s court Bradley Fried, and Kate Barker, a former BOE policy maker.

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