FCA's Bailey is confirmed as Carney's successor at Bank of England

clock
FCA's Bailey is confirmed as Carney's successor at Bank of England

Financial Conduct Authority (FCA) chief Andrew Bailey has been confirmed this morning as the next Governor of the Bank of England (BoE).

Bailey (pictured) has been selected as Mark Carney's replacement.

The FCA's CEO has long been favourite for the role Carney will vacate in January 2020, but his chances had seemed to have been hit by a string of scandals in recent times. The City regulator's role in the Woodford liquidity crisis has been widely criticised, for instance.

With monetary policy still operating at emergency levels 10 years after the great financial crisis, the new governor is going to need to get creative in the next economic downturn. Any move to support significantly expanded fiscal policy will bring questions about the Bank’s independence."

However, Bailey, who was formerly deputy governor of the BoE, remained in the hunt, and has secured the job and is set become the 121st BoE Governor in its history.

Oliver Blackbourn, portfolio manager on the UK-based Multi-Asset team at Janus Henderson Investors commented: "The new Governor of the Bank of England is likely to face a challenging term in office. Political uncertainty and a late-cycle global economy present twin threats to the policy objective, at a time when monetary policy is already operating at close to maximum support.

"With monetary policy still operating at emergency levels 10 years after the great financial crisis, the new governor is going to need to get creative in the next economic downturn. Any move to support significantly expanded fiscal policy will bring questions about the Bank's independence. Communication is likely to be a key skill.

The FT said a number of potential candidates for the top job had recently learnt they had been ruled out of the running, including Minouche Shafik, director of the London School of Economics, Shriti Vadera, chair of Santander UK, and ex US Federal Reserve official Kevin Warsh.

A version of this article was first published by Investment Week, a sister title to International Investment