Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bank of England's outspoken, inflation-wary chief economist to quit

EconomyApr 13, 2021 12:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The Chief Economist of the Bank of England, Andy Haldane, listens from the audience at an event at the Bank of England in the City of London

By David Milliken and William Schomberg

LONDON (Reuters) - Bank of England Chief Economist Andy Haldane, who has sounded the only notes of alarm about inflation among the central bank's top policymakers, will leave the institution after more than 30 years to run a charity, the BoE said on Tuesday.

Haldane has been the most upbeat member of the BoE's Monetary Policy Committee about the chance of a sharp economic recovery from the COVID pandemic, and in February he warned that an inflationary "tiger" might be stirring.

Sterling briefly dipped against the dollar and the euro after the news that Haldane would step down following the MPC's June meeting.

He will start his new job in September as chief executive of the Royal Society for Arts, Manufactures and Commerce. Founded in 1754, it says it "unites people and ideas to develop practical solutions to solve the challenges of our time".

"Markets have initially viewed it as the only major hawk leaving the committee, perhaps the only hawk at the moment," James Smith, an economist at ING, said.

Haldane has recently likened the economy to a "coiled spring" and highlighted how a savings glut built up by richer households during the pandemic could spur a sharp recovery.

In September, just before a second wave of COVID cases derailed the economy, Haldane criticised commentators who were more doubtful about recovery for taking an overly pessimistic, "Chicken Licken", view.

Haldane joined the BoE in 1989 direct from university and became chief economist in 2014, after serving in financial stability roles during the global financial crisis.

He was considered a candidate for governor when the job was up for grabs last year, but the role went instead to Andrew Bailey.

Haldane has taken a keen interest in the charitable sector and also headed a recently scrapped government body to suggest measures to boost businesses' productivity.

SLOWER RATE RISES?

Kallum Pickering, an economist at Berenberg, said Haldane's departure might make the BoE slightly slower to raise interest rates when the time comes.

"At the margin, with the absence of Haldane, the MPC may now react to any forthcoming inflation risks a little later than it otherwise would - but only by a meeting or two at the most," Pickering said.

The BoE itself - rather than Britain's Treasury - decides who will be chief economist. It said it would advertise for a successor to Haldane in due course.

Governor Bailey said Haldane had been "an imaginative and creative thinker on the wide range of issues the UK economy faces, as well as helping create and drive forward new ways for the Bank to engage with the public".

Haldane has a reputation as the BoE's most colourful speaker.

In 2012, he addressed a gathering of the anti-capitalist Occupy movement and praised it for suggesting new ways to fix the shortcomings of global finance.

A year later, he said central banks had "blown the biggest government bond bubble in history" as they stepped up their bond-buying programmes.

But he has not been uniformly hawkish, endorsing a "sledgehammer" approach to bond purchases in 2016 when the economy appeared to be entering a sharp downturn following the unexpected referendum decision to leave the European Union.

He was sceptical about the possibility of the BoE taking interest rates below zero for the first time.

Haldane had increasingly taken an interest in issues beyond pure economics.

On Monday, he led a discussion about the importance of kindness for improving mental health and he invited former international cricketers and Doreen Lawrence, an anti-racism campaigner, to similar events.

Haldane said he shared the RSA's sense of challenges from technology to longevity, from inequality to the environment.

"Meeting these new challenges will require new thinking, new policies and new partnerships between governments, industries and civil society, working in partnership," he said.

Bank of England's outspoken, inflation-wary chief economist to quit
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email