Minouche Shafik is leaving the Bank of England to run the London School of Economics

Lynsey Barber
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Minouche Shafik joined the Bank of England in 2014 (Source: Getty)

Deputy governor Minouche Shafik is leaving the Bank of England at the start of 2017 for a top position at the London School of Economics.

She joined the central bank in 2014 as deputy governor for markets and banking and will also leave the monetary policy committee (MPC), financial policy committee (FPC) ,the board of the Prudential Regulation Authority (PRA) and the Bank's Court of Directors when she departs at the end of February 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. We wish her the very best for the future”.

Shafik, a former deputy managing director of the International Monetary Fund, vice president of the World Bank and one of the most powerful women in the world according to Forbes, will take on a new role at the top London university next September as director.

"I have especially enjoyed connecting the dots and the people across the bank’s monetary, macro-prudential and micro-prudential policy responsibilities," said Shafik.

"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 – 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”.

The Treasury will begin searching for a replacement.