Claire Jones Four things to expect from a Carney-led Bank of England

Mark Carney appointed as Sir Mervyn King's successor. Image by Getty

1. Mr Carney could introduce a commitment to keep rates on hold for an extended period of time.

Fed chairman Ben Bernanke was not the first to come up with the idea of making a commitment to keeping rates at ultra-low levels for a number of years, so long as inflation remained low. Mr Bernanke’s big idea was copied from Mr Carney’s Bank of Canada, which introduced a conditional commitment in April 2009 – two years before the Fed – with the aim of lowering longer-term interest rates.

2. Expect radical changes to the way in which the Bank operates.

Bringing in a foreigner to head your central bank is very rare – it signals that the government of the day believes there’s something deeply wrong. That Mr Carney has got the job signals the government is intent on root-and-branch reform of the Bank.

3. One of Mr Carney’s strengths is that he is particularly well versed with the ins and outs of global regulatory reform. He has chaired the Financial Stability Board, the premier policymaking body for financial regulation, since last November.

Threadneedle Street, which is set to become banking regulator next year, would have had to focus more of its efforts on global regulatory reform. But Mr Carney’s expertise means that the Bank’s handling of supervision and financial stability policy will take on global prominence.

4. His appointment means that three of the major central banks are headed by former Goldman Sachs bankers. Mario Draghi, ECB president, and William Dudley, the head of the Federal Reserve Bank of New York, are also ex-Goldman.

But that does not necessarily mean that relations between the Bank and the City will improve. Mr Carney had a much-publicised spat with Jamie Dimon, chief executive of JP Morgan Chase. The pair had argued over how much extra capital the world’s biggest banks would need to hold post-crisis.