Bank of England's Minouche Shafik leaves to run the LSE

Minouche Shafik Image copyright Getty Images

Minouche Shafik, one of the Bank of England's deputy governors, is leaving to become the director of the London School of Economics.

She is one of only two women on the Bank's nine-member Monetary Policy Committee, which sets interest rates.

Ms Shafik will step down at the end of February.

She joined the Bank as deputy governor for markets and banking in August 2014 after stints at the International Monetary Fund and the World Bank.

Bank of England governor Mark Carney said Threadneedle Street would 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," he said.

"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."

'Connecting the dots'

Ms Shafik said it had been a privilege to work at the Bank of England and that it was impossible to resist the chance to run the LSE.

"I have especially enjoyed connecting the dots and the people across the Bank's monetary, macro-prudential and micro-prudential policy responsibilities," she said. "I leave the Bank with a deep appreciation for its work and much admiration of its staff."

The LSE is familiar territory for the former IMF deputy managing director as she earned a Master's in Economics at the school, which is part of the University of London.

Image copyright Getty Images
Image caption Minouche Shafik, then IMF deputy managing director, with former Luxembourg prime minister Jean-Claude Juncker, in May 2011

Ms Shafik, who was born in Egypt and emigrated to the US with her family at the age of four, is the first woman to run the LSE on a permanent basis and its 16th director.

Prof Julia Black will continue to run the LSE until the new director starts in September 2017 after a post-Bank cooling-off period.

US academic Craig Calhoun said in February he was leaving before the end of his five-year term as LSE director to run the Berggruen Institute, a political and philosophical think tank set up by billionaire investor Nicolas Berggruen.

Ms Shafik previously held academic appointments at the Wharton Business School of the University of Pennsylvania and Georgetown University's economics department.

She was made a Dame Commander of the British Empire in the Queen's Birthday Honour's list last year.

The Treasury, which is responsible for recruiting a successor, will advertise the deputy governor role in the coming months.

The Bank of England has another three deputy governors: Ben Broadbent (monetary policy), Sam Woods (prudential regulation) and Sir Jon Cunliffe (financial stability).

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