George Osborne has announced that Canadian Mark Carney, who is working as the Governor of Bank of Canada, will be appointed as the new chief of the Bank of England.

Carney, who was born in the small town of Fort Smith in the Northwest Territories, will have a difficult time ahead as the new head of the most important financial institution in the UK. It is believed that Prime Minister David Cameron will choose Carney at a time when the UK's economy is facing slow growth and serious concerns over cuts and borrowing.

It is estimates that the Chancellor George Osborne might have to look for a further 11 billion pounds of tax increases or cuts as the plans for cuts extend beyond the election period. IFS estimates that the total borrowing would come in at 133 billion pounds during the year till March 2013. Experts say that week economic performance since March indicates that the government might be forced to make more cuts and also record an increased borrowing for the year next month.

Carney met his wife Diana at England's Oxford University and was described as "a subject of her majesty the Queen" by Osborne.