LONDON, Dec 20 (Reuters) - Britain's new government named Andrew Bailey as the next Bank of England boss on Friday, entrusting one of the City of London's most experienced regulators with steering the world's fifth-biggest economy and its vast finance industry through Brexit.
Following is some reaction to his appointment from economists and business groups.
GEORGE BUCKLEY, ECONOMIST, NOMURA
"Its a good choice, a steady choice. They could have made a political choice but they did not.
"Its nice to see theyve chosen someone for their capacity to do the job, as opposed to whether they are a supporter or not of the government. This should be an appointment that is above the political fray, and in that sense it is, as they have chosen someone who has the qualifications for it.
"It also makes sense to choose someone whos been at the bank for a very long time, and understands how the bank works from a number of angles."
"Its difficult enough as it is to try to work what a new member of the Monetary Policy Committee will bring to the committee."
"Its particularly difficult when their primary job is not to do with commenting on or making interest rate decisions.
"We dont have a great deal of information on what he will do."
PAUL DALES, UK ECONOMIST, CAPITAL ECONOMICS
"Hes considered a safe pair of hands."
"Having previously worked at the Bank in various guises for over 30 years, Bailey can be considered an insider with outside experience."
"But he has never served on the Monetary Policy Committee so we dont know whether hes a dove, a hawk or somewhere in between."
"It is very rare for new governors to come in and change the dial on monetary policy on day one. So Baileys appointment doesnt change our forecasts in any way. Instead, governors usually make their mark (good or bad) during crises."
"Perhaps the biggest challenge will be dealing with the next severe downturn, which will probably take pace during his eight-year term. That may require some innovative thinking given that the Bank is unlikely to enter it with much interest rate ammunition and as the current arsenal of unconventional policies are not considered very effective."
DEREK HALPENNY, HEAD OF RESEARCH, MUFG
Its worth noting that a strong favourite for the role, LSE director Minouche Shafik, was rejected partly on the basis of her opposition to Brexit according to a report in the FT. On the other hand PM Boris Johnsons economic adviser when he was London mayor, Gerard Lyons, who has strong pro-Brexit views, was also not selected for the post. This could suggest that Andrew Bailey may have a somewhat more moderate view on the issue."
"If this is the case, and he is less concerned about the adverse economic impact of Brexit, it makes the case that he may be less inclined to cut interest rates than markets are currently pricing."
"Overall its worth noting that regardless of the stance of the BoE governor, there have been several instances in the past where a governor has been out-voted on the MPC and so ultimately his views do not necessarily determine the consensus."
SILVIA DALLANGELO, SENIOR ECONOMIST, HERMES INVESTMENT MANAGEMENT
"He should be safe pair of hands, and I think he will be well-positioned to lead an independent Bank at a highly challenging time. His appointment is a positive for financial markets, as it provides some certainty at an otherwise uncertain time. However, looking ahead, he faces a tough job as he is expected to take swift action to smooth out the likely bumps of the Brexit process the country is going though."
PAUL EVANS, DIRECTOR-GENERAL, ASSOCIATION OF BRITISH INSURERS
"This is an excellent appointment which the insurance and long-term savings sector will wholeheartedly support. Andrew is an outstanding public servant with a rich understanding of the regulatory challenges that need to be resolved if we are to play our fullest part in supporting economic and social needs."
SIMON MORRIS, PARTNER, CMS LAW FIRM
"The market is sure to welcome a real pragmatist who has run both the prudential and the conduct regulators. His views on maintaining open financial markets in the aftermath of Brexit will chime with the City at a time of major disruption." (Reporting by David Milliken)