The Bank of England (BOE) has announced that Megan Greene will replace Silvana Tenreyro as an external member, with a three-year term commencing in July 2022. Greene is currently the global chief economist at Kroll, a provider of risk and regulatory-compliance consulting services. According to the BOE, Greene “has a broad understanding of financial markets internationally and significant experience of advising leaders on the potential impacts of global macroeconomic developments.” Tenreyro, who is one of the most dovish monetary policy committee (MPC) voters, has been on the central bank’s committee since July 2017. External members are allowed to serve a maximum of two three-year terms.
Megan Greene’s appointment comes as the BOE faces significant challenges in managing the UK’s economic recovery from the COVID-19 pandemic. One of the key issues facing the central bank is determining the appropriate path for monetary policy. This includes setting interest rates at a level that supports growth without fueling inflation, which in recent months has surged past the BOE’s 2% target.
With a keen understanding of international financial markets and extensive experience advising leaders on global macroeconomic developments, Greene’s contribution to the committee may help address these challenges. Greene has held various positions at notable firms throughout her career, including serving as the chief economist for Manulife Asset Management, the managing director for the Economist Intelligence Unit, and the managing director for FX Risk Advisers. Greene holds a BA from Princeton University, an MscCEG (Master of Science in Comparative European Government) from St. Antony’s College at Oxford University, an MscERD (Master of Science in Economic Regulation and Defense) from the London School of Economics, and an MBA from INSEAD.
Silvana Tenreyro, the outgoing external member, is a professor of economics at the London School of Economics and has extensive experience in macroeconomics, international trade, and financial crises. During her tenure on the MPC, Tenreyro was known for adopting a dovish stance, advocating a cautious approach to raising interest rates. She also played an important role in shaping the BOE’s thinking on the use of negative interest rates as a policy tool – a controversial topic within central banking circles.
The BOE’s MPC consists of nine members, including the governor, three deputy governors, the chief economist, and four external members. The appointment of external members is designed to ensure that the committee benefits from a diversity of opinions and experiences, which is crucial for the formulation of effective monetary policy. In addition to Greene, the current roster of external members includes Dame Jayne-Anne Gadhia, Jan Vlieghe, and Michael Saunders.
As Megan Greene prepares to join the BOE’s MPC, she will need to navigate a complex economic landscape, balancing the need for continuity in policy direction with the requirement for flexibility in the face of an evolving pandemic recovery. Her experience and expertise in global macroeconomic developments and financial markets make her a valuable addition to the committee. With the challenges ahead, the BOE will benefit from the broad range of experiences and outlooks that Greene and her fellow committee members bring to the table.
In conclusion, the appointment of Megan Greene as an external member of the Bank of England’s MPC marks an important milestone for both the central bank and the UK’s economic recovery. As the nation continues to grapple with the impact of the COVID-19 pandemic, Greene’s wealth of expertise in international financial markets and global macroeconomic developments will be invaluable in informing the committee’s decision-making process. Alongside her colleagues on the MPC, Greene’s mission will be to pursue a monetary policy that fosters sustainable growth while maintaining price stability, ensuring a smooth recovery for the UK economy.