Former Reserve Bank of India chief Raghuram Rajan is moving up in the race to be the next Bank of England governor.
U.K. Chancellor of the Exchequer Philip Hammond started his search in April for a successor to Mark Carney, who is due to leave at the end of January, kicking off a flurry of speculation over who will lead the three—century-old institution. He also stressed the need for a governor with international stature—Carney is Canadian—prompting economists in Bloomberg’s survey to rate Rajan as a prime contender.
Despite downplaying the speculation, the University of Chicago professor is now in second place, just behind Andrew Bailey, head of the Financial Conduct Authority.
Sharon White, the CEO of Britain’s communications regulator, has also risen up the standings after Prime Minister Theresa May said she’d like women to apply. All of the BOE’s previous 120 governors have been male.
Whoever is appointed will need a wide-ranging skill set, with the financial, academic and supervisory expertise to oversee the U.K. during a particularly challenging period. They will be expected to guide Britain out of crisis-era interest rates while maintaining financial stability and navigating the unprecedented political and economic complications of the nation’s departure from the European Union.
Andrew Bailey
CEO, Financial Conduct Authority
Bailey joined the banking regulator in 2016 after a distinguished career at the central bank, where he held roles including deputy governor, chief cashier and CEO of the Prudential Regulatory Authority. Bailey, 60, studied at the University of Cambridge where he received a degree in history and a PhD in economic history.
Lauded by former Chancellor George Osborne at the time of his appointment as “simply the most respected, most experienced and most qualified person in the world” for the FCA role, he has more recently faced criticism for a soft touch on financial misconduct.
Raghuram Rajan
Ex-Governor, Reserve Bank of India
Rajan’s name has been floated as a potential candidate who could bring a global perspective to monetary policy as the U.K. disentangles itself from the EU. The 56-year-old oversaw the creation of India’s six-member Monetary Policy Committee mandated to target inflation and was instrumental in prodding banks to clean up their balance sheets. He also previously served as the IMF's chief economist.
Jon Cunliffe
Deputy Governor, BOE
With stints at the Treasury and as the U.K.’s permanent representative to the EU, Cunliffe, 65, would be well-placed to help the BOE navigate the economic aftershocks of Brexit. As deputy governor for Financial Stability, he is a member of both the bank’s FPC and MPC.
Cunliffe took a less conventional route into the upper echelons of the BOE, first working as a civil servant after gaining a degree in English from the University of Manchester and then lecturing in Canada. He moved on to the Treasury and later acted as adviser to two prime ministers.
Ben Broadbent
Deputy Governor, BOE
Educated at Cambridge and Harvard, and with spells at the Treasury and Goldman Sachs under his belt, Broadbent, 54, has a classic CV for a central banker. As deputy governor for monetary policy—a role that also puts him on the Financial Policy Committee and Prudential Regulation Committee—he’ll have a handle on the task facing Carney’s successor.
Broadbent, who also studied music in Paris, is the longest-serving MPC member and has never dissented since joining the committee in 2011. His current term, which expires in June 2019, could be renewed. However, his image as a safe, establishment candidate may have been shaken last year by a clumsy description of the economy as ``menopausal'' that sparked complaints about ageism and sexism.
Dave Ramsden
Deputy Governor, BOE
While he is one of the newer members of the MPC—only joining as deputy governor for markets and banking in 2017—Ramsden is a familiar face in Threadneedle Street after spending a decade as the government’s observer at monetary policy meetings. A career civil servant, he spent almost 30 years at the Treasury with the final 10 as chief economic adviser, and was educated at Oxford and the London School of Economics.
An insider to both the central bank and the government, and already part of the FPC, Ramsden, 55, may be seen as a safe pair of hands. But his work on the Treasury’s negative analysis of the impact of Brexit in 2016 may open him up to criticism from politicians that backed leaving the EU.
Sharon White
CEO, Ofcom
A BOE outsider, White is the head of media regulator Ofcom, so has experience of managing a large organization. She’s also a former Treasury official—a common job on many policy makers’ CVs—and was part of the team that interviewed candidates for BOE deputy governor in 2014.
White, 52, is used to breaking new ground. She was the first woman—and the first black person—to be appointed as a permanent secretary at the Treasury.
Andy Haldane
Chief economist, BOE
The BOE’s chief economist has a reputation for views that go against groupthink, despite spending more than a quarter century at Threadneedle Street. The 51-year-old son of a professional trumpeter is co-founder of a charity called Pro Bono Economics, and has spent time touring the country talking to “real” Brits at a series of town halls.
While known for colorful speeches—he’s made links between policy and biology and weather forecasting—his reputation for non-conformity may count against him. He’s previously landed himself in hot water with comments about the accuracy of economic forecasters and how property is a better bet for retirement than a pension.
Minouche Shafik
Director, LSE
The Egyptian-born economist, 57, already served as a BOE interest rate-setter for three years before taking her current role as director of the London School of Economics and Political Science. She studied in the U.S. as well as the U.K. and was previously the youngest-ever vice president at the World Bank, as well as working in the British government and at the International Monetary Fund.
Glenn Stevens
Ex-Governor, Reserve Bank of Australia
If the Treasury looks abroad for qualified candidates, Stevens, 61, could be one of them. He’s an Australian economist who was the Governor of the Reserve Bank of Australia for ten years. He left in 2016.
Shriti Vadera
Chairman, Santander Plc
Currently the Chairman of Santander Plc, Vadera, 56, was previously a joint government minister for the Department for Business, Innovation and Skills and the Cabinet Office.