Days ago the Bank of England slashed its main interest rate to a record-low 0.25 percent – its biggest cut since the global financial crisis more than a decade ago (DANIEL LEAL-OLIVAS)

London (AFP) – Andrew Bailey on Monday takes over the helm at the Bank of England just days after the BoE, under predecessor Mark Carney, slashed its key interest rate to combat the coronavirus.

Bailey steps up from his role as head of the UK’s financial regulator where he faced strong criticism over his role overseeing investment scandals in Britain.

Carney is stepping down as governor of the BoE after nearly seven years in the post and having already delayed his departure due to Brexit.

“Although the disruption from COVID-19 could be sharp and large, it should be temporary,” Bailey said last Wednesday, after participating as an observer in emergency policy meetings that prompted the shock rate reduction.

Bailey spoke sitting alongside Carney at a press conference after the BoE slashed its main interest rate to a record-low 0.25 percent from 0.75 percent — its biggest cut since the global financial crisis more than a decade ago.

The reduction headed a package of measures to help UK businesses and households cope with economic disruption arising from COVID-19.

– ‘Traumatic time’ –

“Bailey certainly could not be taking over at the BoE at a more traumatic time. It could not be less of a case of being able to ease into the job,” EY economist Howard Archer told AFP.

His first monetary policy committee (MPC) meeting will be on March 26, where analysts expect further emergency action over the virus fallout.

“We expect the MPC to cut bank rate again to its effective floor of 0.10 percent at its scheduled meeting on March 26,” noted Pantheon Economics analyst Samuel Tombs.

Earlier this month, Bailey said he had “no regrets” over his time at the Financial Conduct Authority.

“I went in with my eyes open… it wasn’t a job I applied for, don’t regret it for a moment. In terms of public service and public interest — it’s fascinating,” Bailey told a cross-party panel of lawmakers grilling him on his record at the FCA.

“I will say to anybody who is interested in (taking over at) the FCA, it’s fascinating but it’s hellishly tough at times, but that’s the nature of it,” Bailey added. 

Meanwhile earlier this month, the FCA admitted to a data breach in an embarrassing revelation for the regulator and Bailey. 

The regulator said it had mistakenly published the details of around 1,600 consumers who had complained about the regulator, which is tasked with overseeing the conduct of Britain’s key financial sector, including any data breaches by banks for example.

– Performance ‘concerns’ –

Despite the controversy surrounding Bailey, as expected the Treasury Committee backed his appointment by the government.

However the committee’s chair Mel Stride, an MP in Prime Minister Boris Johnson’s Conservative party, expressed “a number of serious concerns regarding the performance of the FCA both before and during his time as its CEO”. 

As for Canada-born Carney, he has been appointed the United Nations’ special envoy on climate action and finance.

He repeatedly extended his stay as BoE governor to help oversee Britain’s delayed departure from the European Union, which finally took place on January 31.

Carney played a key role reassuring markets in the wake of the 2016 Brexit referendum.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.