Bank of England Governor Mark Carney said that during her tenure, Shafik has helped to drive vital reforms on both the domestic and global stages, highlighting in particular, her work on the Fair and Effective Markets Review which she co-chaired.
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She was formerly deputy managing director of the International Monetary Fund and has also been a permanent secretary at the Department for International Development.
Her role overseeing banking and markets was a new one and gained importance as she oversaw a review of financial markets after the Libor rigging and foreign exchange manipulation scandals.
When she was appointed, Shafik, who also represented the Bank on worldwide committees, was regarded as a potential candidate to succeed Carney.
A deputy governor at the Bank of England has quit her job after only two years to join the London School of Economics.
During her time at the Bank of England she has been responsible for a number of core aspects of the body’s work, including leading and implementing the Monetary Policy Committee’s quantitative easing programme. The decision to leave the European Union prompted the bank to lower interest rates and reintroduce quantitative easing policies again.
The announcement of her departure comes amid substantial change and uncertainty in the economy in the wake of June’s Brexit vote, notably in the financial sector. She has taught at the Wharton Business School and Georgetown University and published on a wide array of topics in economics and global development, according to LSE.
Dame Minouche said she was “thrilled” to be leading LSE at such a critical time. “I don’t know what kind of CV they’re going to ask for from her replacement but it’s obviously going to have to be a very good one”. She isn’t the first BOE policy maker to take over though – Howard Davies, another former deputy governor, ran the institution for eight years until 2011.
Shafik, who has been at the bank since August 2014, will remain in her position until the end of February 2017 before taking up the prestigious post at the LSE in September that year.
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Alan Elias, LSE’s acting chair, said he was pleased to have recruited someone with such a distinguished background. “We are delighted to be welcoming an outstanding leader with such an exemplary track record and with a global standing to match LSE’s own worldwide reach and reputation”.
