A professor at the London School of Economics (LSE) has been appointed to the Bank of England’s monetary policy committee – currently split on the path for interest rates.
The Treasury announced on Monday that Silvana Tenreyro would replace Kristin Forbes, once her term on the panel ends on 30 June.
The Chancellor Philip Hammond said: “I am delighted to appoint Professor Silvana Tenreyro as the new external member of the Monetary Policy Committee at the Bank of England.
“I am confident that Professor Tenreyro will be a strong addition to the MPC, bringing a wealth of economic experience and academic rigour to the committee’s deliberations.”
Professor Tenreyro has taught macroeconomics and monetary economics at the LSE since 2004.
She has previous central banking duties on her CV – having worked as an economist at the US Federal Reserve Bank of Boston while she was also an external member of the rate-setting committee at the Bank of Mauritius.
She joins the MPC at a fascinating time in UK monetary policy, given a surprise surge of support among external members for a rise in interest rates last week in a bid to help control rising inflation.
Ms Forbes, Michael Saunders and Ian McCafferty – who backed a rate rise from 0.25% to 0.5% – were voted down by Bank employees on the panel including governor Mark Carney.
Financial markets and economists will be watching carefully for clues to the rate path Professor Tenreyo may follow when she attends her first MPC meeting in August.
The committee currently has only eight members as former Bank deputy governor Charlotte Hogg is yet to be replaced after she quit in the spring for failing to declare that her brother works for Barclays.
Commenting on Professor Tenreyro’s appointment, Mr Carney said: “I am delighted to welcome Silvana Tenreyro to the MPC and am very much looking forward to working with her.
“Her extensive and varied academic experience – on the monetary transmission mechanism, the dynamics of productivity, trade, housing issues as well as wage dynamics, to name just a few – will be invaluable to the committee as it seeks to promote the good of the people of the United Kingdom through maintaining monetary stability.”