SIMON LAMBERT: The hunt for Carney's successor – with a salary of £ 480k – but the next Bank of England boss is hit harder
It sounds like a nice job if you can get it. The launch has been fired on applications as the next Bank of England governor, complete with a salary of £ 480,000.
The search for the replacement of current bank chief Mark Carney was launched yesterday by Chancellor Philip Hammond, although unfortunately a resume and cover letter were invited instead of a call to audition for Britain's Got Central Bankers.
Nevertheless, anyone who takes over Mr. Carney in February 2020 must be happy in the spotlight – and have thick skin.
In money: the work of the next Bank of England governor comes up with a tempting £ 480,000 salary, but whoever takes it needs a thick skin when independence is threatened
Given the stick he has taken from some quarters, it seems strange to say that Mr. Carney's successor will probably have a harder job.
One of Mr. Carney's great skills was making it look like he had an easy ride.
It is quite possible that he will leave the track with a record that once the & # 39; cut-rates & # 39; reads, raises interest twice, the interest holds much & # 39 ;. In addition, depending on your view of the world, it could be: it turned out to be wrong as an Project Fear architect, or proved to be right with Brexit headaches.
But he has done much more than that. Carney took the lead at the Bank of England in 2013 as Britain was still struggling to recover from the financial crisis and has worked on both supporting the global financial system and boosting confidence in Britain's finances. Britain.
It is unlikely that Mr. Carney will ever be forgiven by savers who have presided at low rates for most of a decade, but one thing he has not had to undergo is political interference.
In fact, the Bank of England has largely been left to continue monetary policy as it deems necessary.
This was the case even when Chancellor George Osborne referred the heavy lifting to low interest rates and the funny money policy of quantitative easing and financing for loans, instead of his own tax and spending sources of fiscal policy.
It remained that way under Mr. Hammond during the Brexit years.
Independence from the central bank came about in response to inflation and the high interest-ridden years of the 1970s and 1980s.
It stopped politicians from manipulating interest rates for their own benefit, or cutting them too much to buy the favor of the voter, or picking them up late for fear of shocking people by asking for time for the party.
The Economist magazine recently said: & # 39; In a single generation, billions of people around the world have become accustomed to low and stable inflation and to the idea that interest rates on their bank deposits & mortgages are under control. & # 39;
It is fiercely guarded in the major Western economies, but the mood of independence is changing.
In the US, President Trump has described the Federal Reserve as & # 39; going loco & # 39; and he tries to delay his interest rate hikes.
In the increasingly polarized world of British politics, both parties seem to want to influence policy.
The left has ideas such as People's QE – printing money for targeted spending – while the law was very critical of the bank and would like it to be curbed.
Who knows what taste of Mr. Carney's government's successor will work next door, or that Britain even left the EU on his departure day on January 31, 2020?
However, it is likely that at some point during the next eight-year term of office of the next man or woman in twenty years, the independence of the Bank will face the toughest test.
That is important because it is so painful that low interest rates have been for many, political interference can have a greater impact on our finances.