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20 December 2019

Bailey to the Bank

Andrew Bailey has been named as the 121st Governor of the Bank of England. Commenting on the announcement, Saul Fulda, Investment Analyst at investment management and stockbroking firm Redmayne Bentley, said:
 
“The former civil servant and Chief Executive of the Financial Conduct Authority was chosen from a list of candidates that included Kevin Warsh, a former aide to George W Bush, and Dame Minouche Shafik, Director of the London School of Economics, along with several Bank insiders.
 
“Mr Bailey, who worked at the Bank for 30 years and was Deputy Governor before he moved to the financial regulator in 2015, is regarded as a safe pair of hands for the job. This is despite suffering a tempestuous 2019, which has seen him clearing up the Woodford saga and the collapse of London Capital & Finance.
 
“An appointment had initially been planned in October, but the process was delayed due to the political uncertainty stemming from the general election. Mr Carney, who was expected to leave on 31st January, has extended his term to 15th March 2020. Mr Carney’s exit will be met with relief by many in the new government, with the outspoken Canadian often crossing the line into the political arena.
 
“Yet, Mr Carney will prove a difficult act to follow. During his tenure, inflation has averaged between 1.6% and 1.7%, economic growth has been positive each quarter, apart from April to June this year, while unemployment has fallen to its lowest since the mid-1970s.
 
“The appointment follows a week which has seen the Bank of England hold interest rates at 0.75%, while inflation remained at 1.5%, below the Bank’s 2% target, and GDP growth was revised up to 0.4% for July to September 2019. 
 
“The normalisation of low interest rates, together with the stagnating growth in the economy, presents Mr Bailey with a difficult hand on joining the table.”
Bailey to the Bank
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