David Ramsden Named Bank of England's Deputy Governor
July 27 2017 - 10:13AM
Dow Jones News
By Paul Hannon
The U.K. government on Thursday named Treasury veteran David
Ramsden as deputy governor of the Bank of England, filling a
vacancy on the rate-setting Monetary Policy Committee that was
created by the previous incumbent's failure to disclose a conflict
of interest.
In addition to helping decide interest rates, Mr. Ramsden will
manage the central bank's balance sheet in his role as one of four
deputy governors with specific responsibility for banking and
markets. He will also sit on the Financial Policy Committee and the
Prudential Regulation Committee, which between them set the rules
for lenders and other financial institutions.
Mr. Ramsden joined the Treasury in 1988 and is now its chief
economic adviser, having worked in a variety of roles that included
leading the government's assessment of whether the U.K. should
adopt the euro. After four years of deliberation, the U.K. in 2003
decided against joining the eurozone.
"Sir Dave's unrivaled experience at the center of U.K. economic
policy for more than two decades gives him the thorough grounding
needed to be successful in his new role," said Philip Hammond, the
U.K.'s Treasury chief. "His departure will be a loss to the
Treasury."
The BOE job became available when Charlotte Hogg resigned in
March after a panel of lawmakers said her failure to disclose a
potential conflict of interest meant she shouldn't do her job.
During her four years at the BOE, Ms. Hogg had neglected to
disclose that her brother worked in a senior role at U.K. lender
Barclays PLC.
BOE Gov. Mark Carney welcomed Mr. Ramsden's appointment.
"As an outstanding public servant, he will bring a wealth of
experience and economic expertise to the bank's policy committees,"
he said.
Mr. Ramsden will be well prepared for one aspect of his new job,
having acted as the Treasury's representative at MPC meetings since
mid-2007. As a result, he has attended more MPC meetings than most
current members of the body. Mr. Ramsden's predecessor as Treasury
representative at MPC meetings was Jon Cunliffe, who has been a
deputy governor at the central bank since 2013.
He joins an MPC that is divided on whether it should raise the
central bank's key interest rate from a record low of 0.25% in
response to an inflation rate that is above its 2% target. In June,
three members voted for a rate rise, but one of those has now
left.
Those who oppose a rate rise point to the uncertainties around
the U.K.'s departure from the European Union as one reason to
proceed with caution. At the Treasury, Mr. Ramsden oversaw a review
of the likely consequences of Brexit that drew some gloomy
conclusions about its impact on the British economy.
Some BOE watchers think that experience will make Mr. Ramsden
less likely to vote for a rate rise.
"Rightly or wrongly Sir Dave Ramsden will be considered a dovish
appointment as far as monetary policy is concerned in the UK," said
David Owen, an economist at Jefferies.
In addition to being a deputy governor, Ms. Hogg had also been
the BOE's chief operating officer. Those roles have now been
separated and the BOE separately named Joanna Place to oversee the
day-to-day management of the institution. Ms. Place had been acting
COO since May 1.
Write to Paul Hannon at paul.hannon@wsj.com
(END) Dow Jones Newswires
July 27, 2017 09:58 ET (13:58 GMT)
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