As Bank of England interest rates reach 5 percent, a look at Governor Andrew Bailey's salary

While we like to see our bank balance grow, especially during the ongoing cost of living crisis, borrowers were saddened to see the interest levels increase instead midday Thursday as the Bank of England raised rates to 5%.

The move marks the highest base interest rate for borrowing costs since April 2008 as the BoE tries to control inflation after the UK’s level remained at 8.7% in May as opposed to the bank’s target of 2% inflation.

It must be noted that this will be the 13th consecutive time the Bank’s monetary policy committee (MPC) has increased interest rates, which now places the UK at the top of all G7 Summit countries with the highest interests.

As the major move is announced, all eyes turn to the head of the MPC and the Bank of England’s Governor Mr Andrew Bailey - PeopleWorld takes a look at the man at the helm.

Mr Andrew John Bailey is a central banker who has held the position of Governor of the Bank of England since 16 March 2020 after serving as the Bank’s Chief Cashier for seven years from 2004 to 2011.

Born in Leicester, Mr Bailey joined the Bank of England in 1985 after graduating from the University of Cambridge with a bachelor’s, master’s and PHD in History as well as working as a research officer in the London School of Economics.

Even though he no longer works for the London School of Economics, Bailey still has ties to the institution as his wife Cheryl Schonhardt-Bailey is a professor of political science and head of the Department of Government. The couple share two children.

During his stint as Governor for BoE, Bailey has received compliments such as a ‘safe pair of hands’ and ‘an experienced technocrat’ as per The Economist, but has also been criticised by union leaders for urging workers not to demand a pay rise and allegedly falling asleep during Financial Conduct Authority meetings.

Bailey seemingly follows his own advice as it was revealed last year that he would refuse a pay rise to his annual pay package of £575,000, plus his additional £99,000 in pension contributions, as he has reportedly done throughout his stint as Governor. The 64-year-old instead told MPs in November 2022 that he wishes lower-paid staff to get a ‘larger share of the pot’.