Bank of England appoints deputy governor

The Bank of England has appointed its chief operating officer as deputy governor of the central bank.

Charlotte Hogg, who replaces Minouche Shafik, is the first appointment made by Philip Hammond.

She will be responsible for the Bank’s bond-buying programme and will have oversight of the UK’s banking system, while remaining COO.

The central bank has also announced that Kristin Forbes is leaving the monetary policy committee to continue her academic career in the US.

Forbes has a hawkish reputation, but has never voted to increase rates at the 30 MPC meetings she has participated in.

However, she was the only MPC member to vote against the Bank of England buying corporate bonds and she was also one of three MPC members voting against the buying of gilts.

IHS Markit chief economist for the UK and Europe Howard Archer says Forbes’ departure could “modestly dilute” the possibility of interest rates rising sooner rather than later, depending on who replaces her on the MPC.

Obviously Kristin Forbes is only one of nine voting members within the MPC, but her leaving could remove a strong voice arguing for an early rate hike should the UK economy continue to show resilience over the coming months and inflation move markedly higher,” Archer says.

This week she said the UK’s “star performer” economy could prompt a rate rise later this year.