CBI chief in line for Bank job

THERE were strong indications in the City yesterday that Howard Davies, the director-general of the Confederation of British Industry, will succeed Rupert Pennant-Rea as deputy governor of the Bank of England, writes William Kay.

While formalities have still to be arranged, it is known Downing Street was keen to maintain the tradition that the governor and deputy should comprise a Bank of England careerist and an outsider. Mr Davies, who has been with the CBI for three years, previously worked at the Treasury and McKinsey, the management consultants.

A Downing Street spokeswoman said: "We'll make an announcement when we're ready."

Mr Pennant-Rea resigned on 21 March after revelations about his three- year affair with a journalist, Mary Ellen Synon.