Carney extends stay as BOE governor till March
To be succeeded by Bailey when term concludes
Mark Carney has agreed to extend his spell at the Bank of England for the third time as Chancellor Sajid Javid praised the outgoing Governor for his “conviction, rigour and intelligence through some of most challenging times in modern history.”
The first non- Briton to lead the 325- year- old institution, when Carney leaves Threadneedle Street on March 15 he will have been in charge for nearly seven years, during which time he has become a British national.
His outspoken style has sometimes enraged politicians and his warnings that Brexit could spark a recession frustrated prominent Leave supporters.
The 54- year- old has, with the Bank’s eight other monetary policy- makers, lifted the interest rate back to 0.75 per cent to put the brakes on inflation caused by a Brexit-fuelled weak pound.
He also broke with tradition by launching a “forward guidance” policy in the style of the U. S. Federal Reserve, and his hints at interest rate rises that never materialized won him the nickname of the “unreliable boyfriend.” He is the world’s best- paid central banker — earning US$ 1.5 million in wages and allowances last year — but his next role, replacing Michael Bloomberg as UN special envoy for climate action and finance, carries a token annual salary of US$1.
Leading financial figures rallied behind Carney’s replacement Friday, new Bank of England Governor Andrew Bailey, as the best candidate to steer the Square Mile — London’s financial district, also known as the City — through Brexit.
Bailey was unveiled Friday as the “outstanding” choice by Javid. The 60-yearold will earn a US$ 850,000 annual salary over his eightyear term.
The Financial Conduct Authority chief executive has been at the forefront of talks with the European Union in preparing the financial sector for Brexit and will continue to play a leading role in the crafting of new regulations, according to the Chancellor.
But he has also been unafraid to hint at the potential for divergence with Europe, saying in April that “left to our own devices, I think the U. K. regulatory system would evolve somewhat differently.” The Chancellor stressed that the “only consideration” was the candidates’ suitability for the job rather than their views on Brexit.
Former London Stock Exchange boss Xavier Rolet, who now runs billionaire Sir Michael Hintze’s fund CQS, said the appointment will boost the city during negotiations. Rolet said: “You often hear that central bankers and regulators don’t think in the same way. If you’ve played both sides, it’s certainly a major advantage. He has the ability to deal with both central banks and securities regulators around the world to help secure the complex regulatory agreements that will be needed to maintain London global leadership as a financial centre.”
Other chief executives and grandees said the all-around experience of Bailey — who first joined the Bank more than 30 years ago — would be a key asset after more than three years of political turmoil and debate over the U.K.’S relationship with Europe.
Outgoing Phoenix boss Clive Bannister said: “He understands how to navigate complex regulatory environments and is well positioned to argue for Britain in the debates to come with our friends in Europe.”
Ian Axe, the chief executive of Panmure Gordon, said: “The city needs stability after a period of ambiguity and confusion over Brexit. Andrew is known, and a very safe pair of hands.”
Bailey beat out candidates for the job including former deputy governor Dame Minouche Shafik, and the former U.S. rate-setter Kevin Warsh.
Dame Jayne-anne Gadhia, f ormer Virgin Money boss and now Salesforce U. K. chief, said: “He will hold everybody to account and be his own man. He is good news for the city and the U.K.”
Sir Mark Boleat, a former City of London chief and chairman of the Link cash machine network, added: “I’ve found him absolutely straightforward and honest, and frank when he needed to be ... He is not beholden to anybody and he is not looking for the next job.”
Revolut chairman Sir Martin Gilbert added: “He’s a very good choice, he has the necessary experience to do the job. I always thought the spell at the FCA would stand him in good stead to be appointed as Governor as it gives him experience of both regulatory bodies.”