New Bank boss in vow over role

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Canada’s Mark Carney, the next Bank of England governor, has pledged to ensure that policy decisions at the central bank do not rely too much on any one individual and said he would aim for clear and transparent accountability.

Former senior Bank policymaker Adam Posen told legislators that the current Bank of England governor, Mervyn King, is too powerful.

He said the situation will worsen when Mr Carney, who is now governor of the Bank of Canada, takes over in July because he will have additional powers of financial regulation.

“I would make the distinction between the responsibilities of the institution, and the power of any individual within that institution,” Mr Carney said, when asked about the criticism, although he said he had not seen Mr Posen’s testimony.

“Part of my responsibility when I am there is that as the Bank gets additional responsibilities ... is to ensure that the committee structure, the new governance structure, the other aspects, work to their full effect,” he said.

“To ensure that the institution is discharging its responsibilities in the right way, it’s not relying on a single individual – it won’t be – and that accountability is clear and transparent.”

Mr Posen’s comments were the strongest criticism so far from a recent member of the Bank’s Monetary Policy Committee alleging Mr King’s lack of accountability.

He said the governor rejected alternative views on how to boost the economy and excluded external members of the committee, who are appointed by the chancellor, from key discussions.