Page last updated at 16:35 GMT, Monday, 26 November 2012

Bank of England statement

Chancellor of the Exchequer George Osborne has announced that the current governor of the Bank of Canada, Mark Carney, will replace Sir Mervyn King as the next governor the Bank of England.

Sir Mervyn, who has held the position since 2003, is due to step down at the end of a second five-year term in summer 2013.

Making a statement to MPs on 26 November 2012, Mr Osborne described Mr Carney as "the outstanding central banker of his generation" and "a person of real quality".

"He is quite simply the best, most experienced and most qualified person in the world to be the next governor of the Bank of England and to help Britain's families and businesses through these difficult economic times," he concluded.

Shadow Chancellor Ed Balls commended the decision and said Labour would look forward to working with him.

Mr Carney will serve for five years and will hold new regulatory powers over banks, following the government's decision to scrap the Financial Services Authority.

The governor of the Bank chairs the monetary policy committee, which has responsibility for setting interest rates in the UK.

According to convention, the responsibility for appointing a governor lies with the Crown. In practice, this means it is the decision of the prime minister and chancellor.

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