The government plans to kick off the process to appoint a successor for Bank of England Governor Mervyn King this autumn, Chancellor George Osborne said.
The government has come under pressure from the influential head of the Treasury Committee in parliament, Conservative politician Andrew Tyrie to explain how it will chose a new governor. Tyrone has called for clarity about the process after press speculation over possible candidates being approached informally.
There will be a proper process for appointing the next governor, Osborne said in a statement released to reporters at the spring meeting of the International Monetary Fund in Washington. But that has not begun and will not until the autumn.
King's second and final five-year term ends at the end of June next year.
The government is expected to advertise the position and a decision should be announced around the end of the year. The new governor will be formally appointed by Queen Elizabeth, who will rubber-stamp the proposal from Osborne and Prime Minister David Cameron.
The new governor will be one of the most powerful central bankers in the world as the Bank will take over new responsibilities for the stability of the financial system and as top-bank regulator.
Deputy Bo Governor Paul Tucker and Financial Services Authority Chairman Adair Turner have been tipped as front runners in the race, but government officials have acknowledged an outsider could be considered to shake things up, given the expansion of the Bon's powers.
(Reporting by Sven Egenter. Editing by Jane Merriman)