Brexit critic joins Bank of England interest rate-setting committee


Forbes was one of the 3 members who voted to hike rates last week.

After studying at the National University of Tucuman in Argentina, Ms Tenreyro acquired a Ph.D from Harvard and has been teaching macroeconomics and monetary economics at LSE since 2004.

The chancellor has appointed a trade specialist to the Bank of England's ratesetting committee in a move that may help to shape policy in the context of Brexit but is expected to reduce the chance of an immediate rate rise. She is a Professor of Economics at the London School of Economics (LSE) and an academic visitor at the Bank of England.

In common with the vast majority of the economics profession, Ms Tenreyro also estimated that Brexit would have a negative impact on the United Kingdom economy.

Ms. Forbes was one of three members of the MPC to vote for a rise in the U.K.'s key interest rate this June, after annual inflation accelerated to 2.9% in May.

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She replaces Kristin Forbes as an external member of the MPC and joins the committee at a time when it is at its most divided on the direction of interest rates in six years. Otherwise, she voted for rates to be left unchanged, on some occasions against a minority that wanted to raise rates.

Martin Beck at the consultancy Oxford Economics said Tenreyro's appointment meant the MPC's "arch-hawk" had been replaced by an unknown quantity.

Tenreyro's busy CV also shows she has worked as an economist at the US Federal Reserve Bank of Boston for two years from 2002, been a member of the Council of the European Economic Association between 2010-2015, an elected member of the Council of the Royal Economic Society since 2015 and a member of the scientific committee for the Banque de France sine 2013.

"Given that it is very much the pattern for newly appointed committee members not to vote against the consensus view, it seems likely that Professor Tenreyro's appointment will shift the MPC's balance in a dovish direction, at least in the next meeting".

"Skill-biased technological progress, globalisation, and the fall of unions have created winners and losers, and the latter have not been compensated for their losses".