At the time, the UK wanted to offer the job for a single eight-year term. Mark Carney only wanted to serve five, however. His children’s education was one factor, and he had his eye on Canadian politics – five years could mean moving back home in 2018, in time for a bid to become Canada’s prime minister.
Mr Osborne was desperate to have the Canadian, so five years it was, as well as a bumper pay packet amounting to more than £880,000 per year.
In the summer of 2013 Mr Carney arrived. He gave his first big speech to companies in Nottingham, setting out a new way of doing business.
Instead of deciding interest rates exclusively in a monthly meeting which kept markets guessing, he would try to set out a longer-term path to raising rates. Forward guidance, it was hoped, would make the Bank’s actions clearer, enabling firms and households to plan their finances better, avoiding the shock of an unexpected rate hike.