The first of two new Bank of England deputy governors will be appointed this "Expect an announcement later this week on that," he said. The first new deputy governor will replace the current deputy Mr Howard Davies who is leaving the Bank next month to head up the newly enlarged City watchdog the Securities and Investment Board. But the Treasury spokesman declined comment on a report in the Sunday Times newspaper which said Mr David Clementi, chief executive at investment bank Kleinwort Benson, will be appointed deputy governor this week. There may be some surprise in the City if Mr Clementi is appointed. His name has not been linked with the post until now, with Goldman Sachs chief economist Mr Gavyn Davies widely tipped for the post. Bank of England chief economist Mr Mervyn King has also been linked with the job.

But the creation of the second deputy position later in the year, a post that may be more closely linked with monetary policy, keeps open the possibility that Davies or King will be appointed. - (Reuters)