The Bank of England has appointed a prominent economist who has attacked Brexit and Conservative “mismanagement” as the newest member of its rate-setting committee.
Meghan Green will become a member of the bank’s powerful Monetary Policy Committee (MPC) when Silvana Tenero steps down in July, it was announced.
Mrs. Green has previously expressed strong views on Brexit and economic turmoil during Liz Truss’ brief tenure as Prime Minister.
“Brexit is bad for the UK economically. There will be uncertainty for a long time,” the US economist told Bloomberg in December 2017.
The economist also said there was “a lot of economic mismanagement” in the UK when discussing Truss’ debut with BBC Radio 4 today program in October.
She also said that “Brexit really reaffirms its existence now,” saying that international investors “continue to worry” about Britain because of the whole host of economic challenges the country faces.
Green, global director of US risk management firm Kroll, is part of the rate-setting committee at a time of great vulnerability in the economy, after 11 consecutive rate hikes as the bank tries to contain inflation.
His successor, Tenryu, was seen as one of the “doves” of the Monetary Policy Committee, often voting against the consensus in favor of lowering interest rates to support growth through jobs.
“Although we don’t know much about Green’s stance on monetary policy, we can say one thing: It would be difficult for anyone to be more flexible than Tenero,” HSBC’s Elizabeth Martins told Reuters.
It comes as the International Monetary Fund (IMF) has updated its forecasts for the UK economy this year and next – but it still expects it to grow at a slower pace than other countries in the Group of Seven (G7).
UK output is expected to contract by 0.3% this year before rebounding to grow by 1% next year, the economists working for the body said. This puts the UK firmly at the bottom of the Group of Seven major advanced economies this year.
The International Monetary Fund has also said that interest rates in major economies will fall in the future due to lower productivity and aging populations – describing the recent increases as “temporary”.
But the Bank of England – which has raised interest rates from 0.1% to 4.25% since December 2021 to tackle the inflation crisis – is set to raise interest rates again in May.
Andrew Bailey, Governor of the Bank of England, said Green “brings significant experience from his work in financial services and academia and we will benefit greatly from his contributions to our policy discussions.”
Consultant Jeremy Hunt said his “extensive experience in financial markets and the real economy” would bring valuable new knowledge” to the bank.
The Bank of England has appointed a prominent economist who has attacked Brexit and Conservative “mismanagement” as the newest member of its rate-setting committee.
Meghan Green will become a member of the bank’s powerful Monetary Policy Committee (MPC) when Silvana Tenero steps down in July, it was announced.
Mrs. Green has previously expressed strong views on Brexit and economic turmoil during Liz Truss’ brief tenure as Prime Minister.
“Brexit is bad for the UK economically. There will be uncertainty for a long time,” the US economist told Bloomberg in December 2017.
The economist also said there was “a lot of economic mismanagement” in the UK when discussing Truss’ debut with BBC Radio 4 today program in October.
She also said that “Brexit really reaffirms its existence now,” saying that international investors “continue to worry” about Britain because of the whole host of economic challenges the country faces.
Green, global director of US risk management firm Kroll, is part of the rate-setting committee at a time of great vulnerability in the economy, after 11 consecutive rate hikes as the bank tries to contain inflation.
His successor, Tenryu, was seen as one of the “doves” of the Monetary Policy Committee, often voting against the consensus in favor of lowering interest rates to support growth through jobs.
“Although we don’t know much about Green’s stance on monetary policy, we can say one thing: It would be difficult for anyone to be more flexible than Tenero,” HSBC’s Elizabeth Martins told Reuters.
It comes as the International Monetary Fund (IMF) has updated its forecasts for the UK economy this year and next – but it still expects it to grow at a slower pace than other countries in the Group of Seven (G7).
UK output is expected to contract by 0.3% this year before rebounding to grow by 1% next year, the economists working for the body said. This puts the UK firmly at the bottom of the Group of Seven major advanced economies this year.
The International Monetary Fund has also said that interest rates in major economies will fall in the future due to lower productivity and aging populations – describing the recent increases as “temporary”.
But the Bank of England – which has raised interest rates from 0.1% to 4.25% since December 2021 to tackle the inflation crisis – is set to raise interest rates again in May.
Andrew Bailey, Governor of the Bank of England, said Green “brings significant experience from his work in financial services and academia and we will benefit greatly from his contributions to our policy discussions.”
Consultant Jeremy Hunt said his “extensive experience in financial markets and the real economy” would bring valuable new knowledge” to the bank.
