Bank of England deputy Governor Minouche Shafik quits after just two years

Bank of England
Bank of England

Dame Minouche Shafik, deputy governor of the Bank of England, has resigned from the central bank after just two years in the role.

The 54 year-old, who is responsible for markets and banking and is one of the nine members of the Bank's rate-setting Monetary Policy Committee, is to become director of the London School of Economics (LSE).

She will become the first woman to lead the institution on a permanent basis.

It is understood that Dame Minouche, who completed her masters at the LSE and has held top jobs at the International Monetary Fund and the Department for International Development, is cutting short her five year term to pursue her "dream job".

In a statement, Dame Minouche, who leaves the Bank next February and starts her new role in September 2017 after a cooling off period, said it had been a "privilege" serving as deputy governor.

Ben Broadbent, deputy governor for monetary policy at the Bank of England (BOE), Mark Carney, governor of the Bank of England (BOE), Jenny Scott, executive director of communications at the Bank of England (BOE), and Nemat "Minouche" Shafik, deputy governor for markets and banking
Ben Broadbent, deputy governor for monetary policy at the Bank of England (BOE), Mark Carney, governor of the Bank of England (BOE), Jenny Scott, executive director of communications at the Bank of England (BOE), and Nemat "Minouche" Shafik, deputy governor for markets and banking

"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," she said.

Dame Minouche She will leave the Bank during a key time for the City and UK economy, as politicians prepare to enter negotiations following the Brexit vote. 

Besides the Governor, Mark Carney, Dame Minouche has been the most internationally visible member of the Bank's leadership team.

Dame Minouche, who joined the Bank in August 2014, has represented the Bank on global bodies such as the G20, the International Monetary Fund and the Bank for International Settlements. 

She is not the first Bank official to secure the top job at the LSE.

Sir Howard Davies, who recently chaired the UK Airports Commission, served on the Monetary Policy Committee briefly after it gained independence in 1997 and joined the LSE in 2003.

Mr Carney expressed "gratitude and regret" at the announcement of Dame Minouche's resignation.

"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."

While the details of Dame Minouche's remuneration package will not be disclosed until the LSE's annual accounts are released for 2017-18, her pay is likely to be similar to current director Craig Calhoun's package £381,000, which included £50,000 in pension benefits in 2014-15.

As a deputy governor of the Bank, Dame Minouche was paid a £267,946 salary in 2015-16, plus £82,000 in pension benefits, according to its annual report.

The Treasury is expected to announce Dame Minouche's replacement before her departure next year.

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