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Andrew Bailey appointed Bank of England governor – here’s how the City reacted

By Simon Neville, PA City Editor

The City broadly welcomed the appointment of Andrew Bailey to the governor job at the Bank of England.

Seen as a safe pair of hands, economists and business leaders gave their reaction.

Stephen Jones, chief executive of banking industry body UK Finance, said:

“Mr Bailey is widely respected, highly experienced and has demonstrated significant expertise in financial services regulation at both the Bank and FCA.

“This makes him ideally placed to oversee financial stability and monetary policy through a potentially challenging time for the UK economy when he takes over as Bank of England governor.

“We look forward to working with Mr Bailey in the new year as we continue to address the major challenges and opportunities facing the banking and finance sector.”

Rain Newton-Smith, chief economist at the Confederation of British Industry (CBI), said:

“His strong experience, both in Threadneedle Street and at the Financial Conduct Authority, means he is particularly well placed to steer the British economy through the new course it will take after Brexit, and through challenging global economic times.”

Dr Adam Marshall, director general at the British Chamber of Commerce, said:

“Businesses will look to the new governor to foster confidence and offer reassurance at a time of significant change in the UK economy.

“With our own research pointing to a stagnating economy, businesses will want to see the bank deliver continued transparency on interest rates, and use the levers at its disposal to support investment and growth.

“The bank can play a key role in helping firms in all parts of the UK face the real-world challenges and opportunities ahead.”

Chancellor of the Exchequer Sajid Javid announced Andrew Bailey as the next governor of the Bank of England (Tom Nicholson/PA)

Catherine McGuinness, City of London Corporation policy chair, said:

“Mark Carney has done a fantastic job since becoming governor in 2013, helping to raise the global profile of the Bank’s work, and often leading the way on challenges and opportunities of the future such as climate change and fintech.

“Andrew is well placed to continue this important work to ensure that the Bank plays a leading role on the international stage.”

Chris Cummings, chief executive of the Investment Association, said: 

“Andrew’s extensive experience and able leadership, demonstrated at the FCA, will enable him to successfully guide the bank during this critical period for the UK as we prepare to leave the EU.

“We look forward to working with him to ensure the UK’s investment management industry continues to thrive, to the benefit of savers and investors.”

Shadow chancellor and Labour MP John McDonnell said:

“As an establishment figure with what some consider is a less than inspiring record at the FCA, Andrew Bailey will need to demonstrate early that he appreciates the need to address the deep structural problems of our economy and like Mark Carney understands the climate change threat.”

Huw Evans, director general at the Association of British Insurers, said:

“Andrew is an outstanding public servant with a rich understanding of the regulatory challenges that need to be resolved if we are to play our fullest part in supporting economic and social needs.”