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The Chancellor has today announced a number of senior appointments to the Bank of England, which will strengthen and enhance the Bank’s senior team.
- Her Majesty The Queen has agreed, on the recommendation of the Chancellor and Prime Minister, to appoint Anthony Habgood as the Chairman of Court from 1 July 2014
- Her Majesty The Queen has agreed, on the recommendation of the Chancellor and Prime Minister, to appoint Dr Ben Broadbent as Deputy Governor of the Bank of England with responsibility for Monetary Policy, commencing on 1 July 2014
- the Chancellor and Governor have agreed to appoint Dr Nemat Shafik as Deputy Governor of the Bank of England responsible for Markets and Banking, from 1 August 2014
As the new Deputy Governor for Monetary Policy, Dr Broadbent will take up his new role at a critical time. Dr Broadbent will have specific responsibility for the Bank’s research and analysis of the UK economy in support of Monetary Policy Committee (MPC) decisions, and for the provision and distribution of bank notes that are secure against the threat of counterfeiting. Dr Broadbent will sit on the Bank’s Court of Directors, the Monetary Policy Committee, and the Financial Policy Committee. He is also responsible for chairing MPC in the event of the Governor’s absence.
The Chancellor and Governor have agreed the need to create a new Deputy Governor post at the Bank of England for Markets and Banking, responsible for providing greater focus at the very top of the Bank on these two core policy design and execution areas. Dr Shafik will be responsible for reshaping the Bank’s operations and balance sheet, including ensuring robust risk management practices and helping to lead the design and execution of an eventual exit from quantitative easing by the MPC. She will also oversee the implementation of reforms to the Bank’s Sterling Monetary Framework; lead the Bank’s work to build fair, efficient and effective financial markets; and review and strengthen the Bank’s Markets and Banking areas, including a comprehensive review of the Bank’s essential market intelligence function.
Dr Shafik will also be jointly responsible for the Bank’s international surveillance, analysis and engagement. She will represent the Bank in international groups and institutions, including as G7 Deputy and in the Bank’s engagement with the IMF, overseas central banks and the Bank for International Settlements (BIS). This appointment is a central plank of a package of structural and other changes to be announced by the Bank of England Governor, Mark Carney, as part of the launch of the Bank’s Strategic Plan.
The government intends to place the new Deputy Governor on a statutory basis as soon as a suitable legislative opportunity arises. Dr Shafik will sit on the Monetary Policy Committee and will attend the Financial Policy Committee and the Bank’s Court of Directors as soon as she takes up the post, with formal membership of the FPC and Court once the role is placed on a statutory basis. In addition, the Court of the Bank will appoint Dr Shafik to the Board of the Prudential Regulation Authority.
The Chancellor has written to Andrew Tyrie to inform the Treasury Select Committee of the appointments.
Announcing the appointment, the Chancellor said:
I am delighted to announce the appointment of three such highly qualified and experienced people to join the Bank’s already excellent executive team. Their impressive experience of business, economics and international finance will strengthen and diversify the Bank’s top team and enable them to continue to face Britain’s ongoing economic challenges from a position of strength.
Mark Carney, the Governor of the Bank said:
I am delighted that individuals of the calibre of Ben Broadbent, Minouche Shafik and Anthony Habgood will be joining the Bank’s leadership group. With a diverse combination of skills and experience, these appointments result in a well-rounded senior management team at the Bank – one that will set the direction for an ambitious agenda of transformation for the institution and enable it to meet the challenges and opportunities it faces in maintaining monetary and financial stability.