Bank of England outsider Sir Jon Cunliffe appointed Deputy Governor

  • @Benchu_

A career civil servant has been appointed deputy governor of the Bank of England in charge of financial stability. Sir Jon Cunliffe, currently the UK's permanent representative to the European Union, will replace Paul Tucker from November.

The appointment of someone from outside Threadneedle Street to a senior role represents another stage in the shake-up in the top ranks of the Bank following Mark Carney's arrival as Governor from Canada in July.

Before moving to Brussels last year, Sir Jon was at Downing Street, where he advised both David Cameron and before that Gordon Brown on European affairs between 2007 and 2011.

Despite being a non-internal appointment, Sir Jon has experience of Threadneedle Street, having often served as the Treasury observer at Monetary Policy Committee meetings between 2005 and 2007. He was also involved in establishing the new regulatory system in 1997 under which oversight powers were taken away from the Bank and transferred to the Financial Services Authority. Earlier this year, the Coalition restored regulatory authority to the Bank.

Sir Jon said: "It is both an honour and an exciting challenge to be joining the Bank now, as it takes on formally its new role and responsibilities for financial stability."

Mr Carney called Sir Jon "an outstanding public servant" and said he would bring "an important European and international perspective".

Potential internal Bank candidates had been the director for financial stability, Andy Haldane, and the director for markets, Paul Fisher.

There has been friction with the Coalition over Threadneedle Street's demands that banks should raise their capital levels. The former governor, Lord King, complained that the Treasury and Downing Street put pressure on the Bank to water down its demands. The Business Secretary, Vince Cable, this week echoed the complaints of bankers that the Bank was acting like a "capital Taliban".

Next year the Bank will also have to replace Charlie Bean, deputy governor with responsibility for monetary policy, who steps down in June.