Come June and the Monetary Policy Committee (MPC) external member Andrew Sentance will be replaced by Goldman Sachs Managing Director Ben Broadbent.
Mr. Broadbent was an associate professor at the Columbia University and later worked with the Treasury and the Bank of England. Prior to joining Goldman Sachs in 2006 as managing director, Mr. Broadbent was a senior European economist.
“His broad professional experience in the financial sector and academia, as well as a detailed knowledge of the UK economy, will be extremely valuable to the committee”, said Chancellor George Osborne.
The Monetary Policy Committee is currently divided over an interest rate hike to control the high inflation rate. Three members – led by external member Andrew Sentance wanted an immediate rate hike from the historical low interest rate of 0.5%. However, most members voted against a rate hike while there was also a proposal by fellow member Adam Posen for another round of Quantitative Easing to ease the liquidity crunch.
Mr. Broadbent will be joining the MPC on June 1 while Mr. Sentance steps down on May 31, after completing his second term.
Only one female candidate had applied for the position while 27 applications were received in total. The government said it wants more women to apply for the committee’s positions in future.