Blanchflower To Step Down From Bank Of England's MPC

Bank of England policymaker David Blanchflower has announced he will step down at the end of May next year.

Chancellor Alistair Darling told MPs yesterday that Mr Blanchflower will not serve a second term in office of the bank's Monetary Policy Committee (MPC).

Mr Blanchflower, Rauner Professor of Economics at Dartmouth College and a Research Associate at the National Bureau of Economic Research, was often the only member of the MPC to vote for rate cuts, and in fact voted for the cuts nine times this year.

He was often criticised for his grim warnings about the state of the British economy, However these have come true in the recent months with fears of a looming recession and rising unemployment.

Paul Tucker, head of markets at the BoE has also been appointed as its next deputy governor for financial stability. He will replace Sir John Gieve, who will stand down next year.

The Chancellor said he was "delighted" to announce Mr Tucker's appointment, saying he possesses "first-rate market knowledge and extensive central banking experience".

He added: "I am extremely grateful to Sir John Gieve for his contribution to the Bank of England, including leading on work to develop the reforms to enhance its role in preserving financial stability."

Paul Tucker said: "I'm privileged to accept the role of Deputy Governor and look forward to working with the Governor and the Bank team, the Tripartite Authorities, market counterparties and overseas central bank colleagues to address the financial stability challenges ahead".

The Chancellor announced in June that in future the Government would advertise vacancies for the Governor and Deputy Governors of the Bank of England and for external members of the Monetary Policy Committee. This appointment is the to first to follow this new process. The Bank of England will announce arrangements regarding the recruitment of Paul Tucker's successor as Executive Director Markets in due course.

(JM)