Deputy Governor tipped to be the next in Bank hotseat

Earlier this month, three independent reviews into the Bank’s conduct said it suffered from a centralised, hierarchical culture.

This contributed to poor economic forecasting and a slow response at the start of the financial crisis in 2007 – prompting former policymaker DeAnne Julius to call for “full-scale cultural change”.

Moreover, from next year the Bank will take charge of financial regulation, almost doubling its size and boosting the case for a governor with strong management skills and financial market experience, rather than someone in incumbent Governor Mervyn King’s academic mould.

But the Government has done well out of the current leadership. Sir Mervyn backed its austerity programme, and the Bank’s multi-billion bond-buying scheme helped keep the economy afloat. Mr Tucker isn’t seen as radically departing from this agenda.

Economists polled last week saw Mr Tucker as the clear favourite, with 22 out of 23 expecting him to get the job when Mr Osborne announces his decision, probably alongside a major budget statement on December 5. Sir Mervyn’s term ends next June.

Vital for Mr Osborne will be selecting someone with whom he can have a strong working relationship at a time when the economy is struggling to achieve solid growth, almost five years after the start of the financial crisis.

“Personal chemistry matters a lot,” former Chancellor Norman Lamont said.

The case for Mr Tucker, 54, is clear. He has spent his entire career at the Bank, building up a detailed knowledge of both monetary policy and markets. In addition, he is generally well regarded and well connected in the City banking community, unlike Sir Mervyn, who cuts a more distant figure.

“He ticks those boxes,” said Alan Clarke, chief UK economist at Scotiabank, joking that his only objection was that he did not relish reading more of Mr Tucker’s formidably dense speeches.

Mr Tucker would be likely to disappoint those hoping for a big change in the Bank’s culture and approach to policy.

While he has disagreed with Sir Mervyn on some issues, those familiar with the Bank’s workings say they share traits such as an unwillingness to delegate – something that may prove a problem as the Bank’s responsibilities grow.

Mr Tucker is also known for working all hours, and expecting the same from his staff, with an approach which can tend towards brusqueness on occasion. “He’s impatient to get things done,” said Stephen Lewis, an economist at Monument Securities who has met Mr Tucker over the years.