Canada’s Mark Carney is to be the next Governor of the Bank of England.

Carney’s appointment has a come as a surprise to many, as he was rumoured to be out of the running despite having strong backers.

Current deputy governor Paul Tucker was widely thought to be the successor to current boss – Sir Mervyn King.

Carney will start from 1 July 2013.

Sir Mervyn King, said: “I am delighted to welcome Mark Carney as my successor.

He represents a new generation of leadership for the Bank of England, and is an outstanding choice to succeed me.

Since Mark became Governor of the Bank of Canada, I have worked closely with him and admired his contributions to the world of central banking, in which he is widely respected.”

According to the treasury, Canadian-born Carney, 47, will be required to take on British citizenship to serve as governor for five year.

Carney is the first non-British citizen appointed as governor since the Bank’s inception in 1694.

Carney is also the first governor in the Bank’s history to be appointed after an open recruitment process.

In a statement, Carney said he takes the role at a critical time for the UK economy. “I am honoured to accept this important and demanding role, and to succeed Sir Mervyn King with whom I have worked closely over these past five years and from whom I learned so much.” 

“This is a critical time for the British, European and global economies; a decisive period for reform of the global financial system including its leading financial centre, the City of London; and a crucial point in the Bank of England’s history as it accepts vital new responsibilities.”

Adrian Coles, director-general of the Building Societies Association said: “Mark Carney is something of an unknown quantity in the UK, but he does come armed with one crucial credential – the Canadian economy – which has performed better than many.

“He becomes Governor at a time of unprecedented power and responsibility for the Bank of England, which in the future will have an even greater influence over the UK economy than it does today. I wish him well.”