New Bank of England boss Carney faces stimulus battle

LONDON, June 30, 2013 (AFP) – Canadian Mark Carney begins his job as governor of the Bank of England on Monday, joining an institution divided on whether to pump out more cash stimulus to boost Britain’s fragile economic recovery. Carney, who made his name as head of the Bank of Canada where he helped to guide the nation’s economy through the global financial crisis relatively unscathed, is replacing Mervyn King who led the BoE since 2003.

The 48-year-old Canadian is the first foreigner to lead the Bank of England since it was founded in 1694, and takes charge after the central bank was recently granted new regulatory powers over Britain’s troubled commercial banking sector.

“Mervyn King is handing over a battle-weary UK economy to Mr Carney,” said Kathleen Brooks, research director at trading website Forex.com.

“King did the best he could in tricky circumstances, but the markets expect Carney to deliver and help boost the economy. If he does not, then he could find his impeccable reputation as a central banker starts to fade.”

Carney will participate in his first Monetary Policy Committee (MPC) meeting on Thursday, when the bank is widely expected to maintain rates and level of stimulus.

Under King, the B