Camilla Canocchi for Thisismoney.co.uk
Departing: BoE deputy governor Dame Minouche Shafik to step down next year
The Bank of England’s deputy governor for markets and banking will step down next year to become the director of the London School of Economics.
Nemat Shafik, known by her nickname Minouche, joined the Bank’s rate-setting Monetary Policy Committee just two years ago and was due to serve at the Bank until August 2019.
She will take up the top job at the LSE in September 2017 but leave the Bank in February after a ‘post-employment cooling off period’.
Bank governor Mark Carney said Ms Shafik ‘helped drive vital reforms’, especially the ‘successful completion of the Fair and Effective Markets Review which she co-chaired’.
‘We will say farewell to Minouche with gratitude and regret,’ Mr Carney said.
He added: ‘She has overseen a transformation in how we manage our balance sheet and is modernising our high-value payments system. This has been alongside the invaluable insight she brings to all three main policy committees of the Bank and the inspirational leadership she gives to her colleagues.’
Ms Shafik was also a member of the Financial Policy Committee, the board of the Prudential Regulation Authority and the Bank’s Court of Directors.
Before joining the MPC, she had been deputy director of the International Monetary Fund since 2011.
The Bank said the Treasury will now begin the process of recruiting her successor.
Ms Shafik said: ‘It has been such a privilege to work with colleagues at the Bank of England and to serve alongside fellow members of the MPC, FPC, PRA Board and Court of Directors.’
She added: ‘The Bank is a vital institution full of talented people committed to serving the public good – I will miss them a great deal.
‘While it was impossible to resist the opportunity to lead a world-class university like the LSE, I leave the Bank with a deep appreciation for its work and much admiration of its staff.’
Last year Ms Shafik was created a Dame by the Queen ‘for services to public administration and the global economy’.
Her departure comes after Michael Saunders, an economist at Citigroup, joined the MPC on a three-year term in August.
He replaced Dr Martin Weale, whose second term of office came to an end on August 8.