Sarah Breeden appointed to role of deputy governor of Bank of England

The Bank of England (BoE) has chosen the woman who led its response to the Northern Rock crisis to become its next deputy governor.

Sarah Breeden will become deputy governor for financial stability (DGFS) when the current incumbent, Sir Jon Cunliffe, departs from the role, the Treasury said. Her five-year appointment, approved by King Charles, begins in November.

Currently executive director for financial stability strategy and risk, Ms Breeden was picked by then governor Mervyn King in the autumn of 2007 to head the team at the bank dealing with the Northern Rock fallout. She later revealed she asked Lord King for 24 hours to think before taking on the role, which lasted for five months.

When she takes up the role, Ms Breeden will become the fourth woman to help determine the Bank’s base interest rate as a member of the Monetary Policy Committee.

She will also be in charge of the Bank’s work on a central bank digital currency and regular stress tests of UK banks and the wider financial sector. She will also sit on the Financial Policy Committee (FPC) and the Prudential Regulation Committee.

BoE Governor Andrew Bailey said: “I am delighted that Sarah has been appointed as DGFS. She will bring a wealth of financial and economic policy knowledge to the role, both domestically and internationally.”

Mark Carney, the Bank’s former governor praised her appointment saying: “Sarah Breeden is a simply fantastic choice.” He went on to describe her as: “Smart, decisive, cool under pressure, proven reformer, foremost expert in financial stability, markets and climate.”

Chancellor Jeremy Hunt said: “I am pleased to appoint Sarah Breeden… who brings extensive experience to the role, including from her work as a member of the FPC and across monetary, economic and financial matters.”

She will be the first female deputy governor since Charlotte Hogg in 2017. Ms Hogg only lasted eight weeks after lawmakers criticised her failure to declare a possible conflict of interest. Hogg’s predecessor, Minouche Shafik, left halfway through her five-year term to head the London School of Economics.