Jeremy Hunt has appointed centrist economist Megan Greene to replace the consistently dovish Silvana Tenreyro on the Bank of England’s interest rate-setting Monetary Policy Committee from July.
The chancellor’s choice is likely to tilt the balance of argument on the panel away from seeking to lower interest rates and lessen disputes between its nine members.
Greene, a contributing editor at the Financial Times, has recently supported the US Federal Reserve’s decisions to increase interest rates even after turmoil in its banking system. She also highlighted the need for the BoE to raise interest rates in autumn last year, despite concerns that doing so would lead to a long recession.
In November 2022, Greene noted sarcastically on Twitter that the poor outlook for the UK economy was partly the fault of Britain leaving the EU.
“I’m sure Brexit has nothing to do w it, Global Britain and all …” she wrote after the central bank forecast a recession last year, adding a face palm emoji.
Despite Greene’s apparent pessimism about the UK’s economic prospects, which directly contradicts Hunt’s outlook, the chancellor praised her abilities as he confirmed she would serve a three-year term.
“Megan Greene’s wide experience across financial markets and the real economy will bring valuable new expertise to the MPC,” Hunt said on Tuesday. “I am delighted to appoint her to this role and look forward to seeing her contribution to policymaking in the coming years.”
Greene will replace Tenreyro, who has voted regularly not to raise interest rates as fast as the majority on the committee thought was needed.
Following Hunt’s statement, Greene said she was “thrilled” and “honoured” to take up the role. “It will be a privilege and a challenge to help address some of the key monetary policy challenges of our time,” she added in a statement.
Based in the US, Greene has had a varied career in the private sector and academia, focusing on global economic issues. At present, she is global chief economist at Kroll, a consultancy, and holds fellowships at Brown University and Chatham House, a think-tank.
BoE governor Andrew Bailey said Greene brought “significant experience from her work across financial services and academia” to the role.
The MPC comprises five BoE employees and four external members, who are charged with bringing independence of thought to the committee. All nine members vote as individuals, since central bank officials should not vote as a bloc.
Greene’s appointment will be vetted by the influential House of Commons Treasury committee, although it does not have a formal veto over the role.
The next MPC vacancy will come later this year when Jon Cunliffe, BoE deputy governor for financial stability, retires.
The government has traditionally parachuted an outsider, often a senior Treasury official, into this role, but many internal BoE candidates are expected to vie for this job at a fragile time for global financial stability.
