By Paul Hannon
The Bank of England on Thursday said Clare Lombardelli will succeed Ben Broadbent in the key role of deputy governor for monetary policy from July.
Lombardelli was previously the top economic official at the U.K. Treasury and most recently chief economist at the Organization for Economic Cooperation and Development. The announcement comes as the BOE prepares for the publication of a review of its recent performance by Ben Bernanke, a former chair of the U.S. Federal Reserve.
"Clare will lead the actions in response to Ben Bernanke's review of the Bank's forecasting process," the BOE said in a statement.
Having raised its key interest rate in 14 straight meetings from the end of 2021, the BOE has been on hold since August 2023. Earlier this month, it signaled that it is likely to cut its key interest this year, but left the timing of that first move open.
Lombardelli's most recent comments as OECD chief economist suggest she will be comfortable with that stance. In a report on the global economic outlook released earlier this month, the Paris-based research body said that, in most rich countries, "scope exists to start lowering nominal policy rates provided inflation continues to ease." But it also said that rates shouldn't be lowered too quickly.
Bernanke's review is one of the first steps taken by a leading central bank to understand why they underestimated a surge in prices that began almost three years ago and dented living standards. The BOE hasn't yet set a firm date for its publication, but said it is likely to come in the spring.
Write to Paul Hannon at paul.hannon@wsj.com
(END) Dow Jones Newswires
02-29-24 0601ET
