Andrew Bailey faces a host of challenges as next Bank of England chief

The head of the FCA may be able to take the bank in a new direction, writes Phil Thornton

Bailey has been announced the new Bank of England governor (Reuters)

Andrew Bailey will inherit a bulging in-tray when he moves over from running the UK’s premier financial regulator to become the new governor of the Bank of England next year.

A backdrop of weak growth and low inflation, the potential impact of Brexit, the challenge of forging a new regulatory relationship with the European Union and an ongoing debate about what central banks can do to help tackle climate change await him.

“He’s considered a safe pair of hands, but he will face many challenges during his eight-year term, such as protecting the bank’s independence from outside influences and any inside bias,” says Paul Dales, chief UK economist at Capital Economics.