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Room For Another Stooge On The Mpc

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http://news.ft.com/cms/s/ef8eb680-ba4f-11d...00779e2340.html

<quote>

Richard Lambert, a former editor of the Financial Times, will be named as the new head of the Confederation of British Industry on Thursday and will step down from his post on the Bank of England’s Monetary Policy Committee.

In a statement on Thursday, the Bank of England said Mr Lambert would leave the MPC with immediate effect “following his decision to accept a position that would represent a conflict of interest.” He will not attend the rate-setting meetings in April and May.

</quote>

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http://news.ft.com/cms/s/ef8eb680-ba4f-11d...00779e2340.html

<quote>

Richard Lambert, a former editor of the Financial Times, will be named as the new head of the Confederation of British Industry on Thursday and will step down from his post on the Bank of England’s Monetary Policy Committee.

In a statement on Thursday, the Bank of England said Mr Lambert would leave the MPC with immediate effect “following his decision to accept a position that would represent a conflict of interest.” He will not attend the rate-setting meetings in April and May.

</quote>

This could be interesting. It will make an MPC of eight for the next 2 months - giving the BOE a very strong upper hand on the externals. If the quarterly inflation report looks alarming this would mean less resistance to interest rate rises. Merv could push through a tightening - and given that he wasn't that keen on the last cut this doesn't seem out of the question.

Can't remember what Lambert's voting record was like - was he move dovish on interest rate cuts?

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This could be interesting. It will make an MPC of eight for the next 2 months

Not necessarily.

If I remember rightly, when they appointed Andrew Large it was an incredibly quick process, and he didn't have too much time to decide whether to accept. That's part of the reason he told Gordon in advance that he might not serve a full term.

Expect a scramble at the treasury and a rapid appointment - we don't go in for empty seats on the MPC here, unlike the USA.

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It could be because they realise they are only mupp--er, puppets and that the real decisions are taken by Gordon and Al plus the other ad hoc advisors we read about yesterday (Billy Gates, eBay boss etc.).

People usually leave a top job because of loss of job satisfaction.

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It could be because they realise they are only mupp--er, puppets and that the real decisions are taken by Gordon and Al plus the other ad hoc advisors we read about yesterday (Billy Gates, eBay boss etc.).

People usually leave a top job because of loss of job satisfaction.

He's leaving to become the head of the CBI. Or was that bit too difficult to read?

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Moneyweek Profile: Who’s who on the MPC

RICHARD LAMBERT: external member

Joined: June 2003

Avian status: hawkish dove

Voting record: having previously kept pace with the hawks, Lambert was viewed as the key swinging voter for a cut in the August split

As the MPC’s only non-economist (he studied history at Oxford before joining the FT), the former FT editor’s appointment to the committee was controversial. Lambert argues that his experience as a journalist enables him to bring a “broad view” – an opinion backed up by Mervyn King, who remarked that he’d “rather listen to a few minutes of Richard Lambert getting to the nub of the question” than to 30 minutes of rambling from a technical economist. Lambert has expressed his unease with the Bank’s optimistic growth forecast: for targets to be met, he said last month, consumer spending would have to pick up “quite quickly, quite soon”. Yet given his past hawkish tendencies, pundits believe Lambert’s current dovish stance may yet shift.

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I can't see the CBI employing a committed interest rate hawk. They obviously want to use him to nag the BOE for more cuts.

Looks like a reshuffle, but at who's instigation? Gordon's or Mervs?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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