Andrew Bailey, chief executive officer of the Financial Conduct Authority (FCA).
Jason Alden | Bloomberg via Getty Images
Andrew Bailey, the current head of the U.K.’s financial watchdog, has been named as the next governor of the Bank of England.
The news, first reported by the Financial Times late Thursday, was confirmed by the U.K.’s Finance Minister Sajid Javid on Friday morning.
“When we launched this process, we said we were looking for a leader of international standing with expertise across monetary, economic and regulatory matters. In Andrew Bailey that is who we have appointed,” Javid said.
Bailey, 60, is the chief executive of the Financial Conduct Authority (FCA), which regulates the financial services industry in the country. Prior to joining the FCA in 2016, Bailey was the chief executive for the Prudential Regulatory Authority — another part of the U.K.’s central bank.
Bailey joined the Bank of England in 1985 and has worked in a number of areas, including as the executive director for banking services. Bailey is set to take over from Mark Carney on March 16, becoming the 121st governor of the Bank.
Carney, who joined in 2013 and had to deal with the uncertainty and market turmoil caused by the 2016 Brexit referendum, was set to step down on January 31. However, Javid confirmed that Carney agreed to stay in post until March 15 for an orderly transition.
Javid thanked Carney for his work and contribution to the U.K. economy. “I also want to take this opportunity to thank Mark Carney for his service as Governor. The intellect, rigour and leadership he brought to the role during a critical time was a significant contribution to the UK economy moving to recovery and growth.”
Sterling is down more than 14% since Carney took office in July 1, 2013.
“Mark Carney has overseen one of the most tumultuous period in the UK’s political and economic history,” Phil Smeaton, chief investment officer at Sanlam UK said in a note on Friday.
“Now however, Boris’ newly revitalised government is set to being certainty to the UK, boost fiscal spending on infrastructure and core public services, and allow business to unleash its pent up investment demand. Such a backdrop is a stark difference to the quagmire the Carney was forced to slog through, and though tackling the economic challenges of a departure from the EU is still the top priority for Andrew Bailey, he will also need to balance the inflationary risks against subdued global growth.”
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