Bank of England's Tucker to leave after losing out to Carney

Fri Jun 14, 2013 12:27pm EDT
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By William Schomberg and Olesya Dmitracova

LONDON (Reuters) - Bank of England Deputy Governor Paul Tucker, beaten to the central bank's top job by Mark Carney, will stand down later this year, giving the Canadian an early chance to help reshape the BoE's upper echelons.

Tucker, part of the majority of BoE policymakers that opposes further bond buying, had been expected to leave ever since Carney, the former head of Canada's central bank, was named in November as the surprise choice for governor.

Carney will replace Mervyn King, who retires from the BoE at the end of this month.

But the timing of the announcement took some by surprise - Tucker's term was due to end next February - and might be a sign that other top policymakers will bring forward their departures, said Tom Vosa, an economist at National Australia Bank.

"The interesting bit will be whether the replacement is an internal or external candidate, which will probably give you some clues as to how Carney expects to position the bank under his governorship."

Carney will head up a central bank that now has much greater powers, and he is widely expected to start giving markets guidance on monetary policy soon after he takes over.

He has already decided to bring his former chief spokesman from the Bank of Canada with him, in a possible sign he may pursue a more open communications style than King and that more external appointments are in the pipeline.

The decision on who will replace Tucker, who specializes in financial stability, falls to Britain's finance minister, George Osborne, who is widely expected to consult Carney before picking a candidate.   Continued...

The Deputy Governor of the Bank of England, Paul Tucker, addresses the International Association of Deposit Insurers Annual Conference in London October 25, 2012. REUTERS/Neil Hall