Mark Carney Leaving.......

Governor  Mark Carney leaving - what now for Canada? Governor Mark Carney Mark Carney is leaving the helm of the Bank of Canada (BoC) in July of 2013 and heading  to the Bank of England. The governor of the  BoC is widely respected and is considered to  be the one responsible for steering the  Canadian economy through the global  financial crisis. Under Carney's leadership,  Canada has become the envy of other world  powers - banks didn't fail and the economy  has grown. Carney is seen as a strong central banker and  financial regulator and his approach to  monetary policy has triumphed. It started in  March 2008, when he decided to cut the  bank's overnight rate by 50 basis-points,  which was totally opposite to what other  countries were doing. His instincts have  proven to be correct. Then in April, 2009 he introduced a nonstandard monetary tool - the conditional  commitment, a monetary stimulus that held the policy rate for at least a year to boost  domestic credit conditions and to improve market confidence. The Canadian economy  started to improve and started its amazing growth shortly after that. Carney studied  economics at both Harvard and Oxford and worked as an analyst for  Goldman-Sachs in London, England. He is unique in that he is a PhD economist with  real-life experience as an investment banker and as a senior deputy minister at the  Finance Department. He emerged as a thought leader at the Group of 20 and last year was appointed to head up  the Financial Stability Board, which is leading an overhaul of global banking standards. By moving to England he inherits a world in flux, not only at the Bank of England (BoE), but also the surrounding European nations. His role at the BoE is more challenging than at the BoC and is much more political. The U.K has become a stagnant economy and on the verge of another recession. Inflation is high and no one knows where future growth will come from. Carney's new job is a daunting one. Again, if his performance in Canada is any indicator, he will make their economy hum once again. It will be important to see who will take Carney's place. It is rumoured that Tiff Macklem, the senior deputy governor who worked closely with Carney and who shares Carney's approach will be his replacement. With Macklem, we can expect the status quo. Anyone else would be an unknown. Bank of England (BoE) Tiff Macklem Carney's successor, however, will not be without challenges.  The economy has slowed, and government rule changes to  mortgage lending, which has already impacted the housing  market may trickle down to other parts of the economy.  There are still challenges with world economies and our  trading partners, which is having an effect on our markets  as well. It's been a great ride with Carney at the helm. If anyone can  turn around the UK economy, he can. We wish him great  success as we turn a new chapter here in Canada.