Monday, July 5, 2010
Ex-head of NIESR replaces Kate Barker on BoE’s MPC – base to stay low for longer?
The Treasury has appointed leading academic Martin Weale as a member of the Bank of England's monetary policy committee (MPC) in a move widely seen as providing Mervyn King with support for his low interest rate policy. Weale, who is fairly relaxed about the government's austerity measures, has nonetheless argued that they are unnecessarily tough, and is likely to vote to keep interest low while the measures take their toll on the economy. Weale is one of four external members appointed by the government and will replace Kate Barker, who finished a nine-year stint on the rate-setting committee at the end of May.