Chancellor George Osborne today described the next governor of the Bank of England as "the outstanding central banker of his generation", as he unveiled Mark Carney to MPs.
Mr Osborne said the new governor "was a person of real quality" and would serve at the Bank of England for five years, from taking up the post next July.
Shadow Chancellor Ed Balls commended the choice of Canada's current central banker and said Labour would look forward to working with him.
Announcing the appointment to MPs, Mr Osborne said: "He is quite simply the best, most experienced and most qualified person in the world to be the next governor of the Bank of England and to help Britain's families and businesses through these difficult economic times."
The job is the one of the most powerful in Britain, with the Bank of England taking on extra responsibilities for banking supervision as part of an overhaul of financial regulation following the economic crisis.
The governor will have responsibility for setting interest rates, regulating banks and other financial firms and heading a new committee designed to spot and ward off future crises.
Mr Osborne continued: "Britain needs the very best at a time like this and in Mark Carney we have got him.
"Mr Carney is unique amongst the potential candidates in combining long experience of central banking, huge international credibility in economics, deep expertise in financial regulation and a first hand experience of private sector financial institutions.
"He is acknowledged as the outstanding central banker of his generation and I believe he will bring the strong leadership and external experience the bank itself needs as it takes on its heavy new responsibilities for regulating our banking system.
"In that respect he will bring a fresh perspective."
Sir Mervyn King has just over seven months to run before his second term ends on June 30.
Mr Osborne paid tribute to the outgoing governor.
He said: "Sir Mervyn King has served as the current governor with great distinction and unquestioned integrity for almost a decade, five years of which have been during the most difficult period of economic policy making of the modern age.
"He will continue to do his vital work until June 30 next year and there will be opportunities then to thank him for service to his country."