Bank of England deputy governor Shafik leaves to join LSE

A deputy governor of the Bank of England, Nemat ‘Minouche’ Shafik, is to leave after just two years to join the London School of Economics (LSE) as director.

Dame Nemat, who joined the central bank in August 2014 from the International Monetary Fund, is to be the first woman to lead LSE permanently.

She will leave the bank in February 2017, over two years before her term on the monetary policy committee was to due finish, and join the Russell Group university in September next year.

BoE governor Mark Carney said: “We will say farewell to Minouche with gratitude and regret. She helped drive vital reforms on the domestic and international stages, perhaps most prominently in the successful completion of the Fair and Effective Markets Review which she co-chaired.

“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. In her work and by her example, she leaves an important legacy”.

Shafik added: “I have especially enjoyed connecting the dots and the people across the bank’s monetary, macro-prudential and micro-prudential policy responsibilities. Together we have stood up to every test, maintaining stability with a modern approach.

“The bank is a vital institution full of talented people committed to serving the public good … 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”.

HM Treasury will recruit a successor, which will be advertised in due course.