Appointment to the Monetary Policy Committee

The Chancellor has today announced to the House of Commons the appointments of Tim Besley and Andrew Sentance to the Bank of England’s Monetary Policy Committee (MPC).

The Chancellor said:

“I am delighted that Tim Besley and Andrew Sentance have agreed to join the Monetary Policy Committee. Their extensive experience will enable them to make an invaluable contribution to the work of the Committee.”

Notes for editors

1. Tim Besley is Professor of Economics and Political Science at the LSE, where he is also Director of the Suntory Toyota International Centres for Economics and Related Disciplines (STICERD). He is a Research Fellow at the Institute for Fiscal Studies, the CEPR and a member of the Institutions, Organizations and Growth program of the Canadian Institute for Advanced Research. He is currently serving a three-year term as President of the Bureau for Research and Economic Analysis of Development of which he is also a founding Board member. His professional honours include being a Fellow of the British Academy, a Fellow of the Econometric Society, and a Fellow of the European Economics Association. He holds a Bachelor, M.Phil and D.Phil degrees from the University of Oxford and was previously a Fellow of All Souls College, Oxford. In 2005 Tim Besley was awarded the Yrjö Jahnsson Award. This award, made every second year to a European economist under 45, is the most prestigious award in European economics, and is the European equivalent of the American Clark medal.

Tim Besley will be appointed with effect from 1 September 2006.

2. Andrew Sentance is Chief Economist and Head of Environmental Affairs at British Airways, advising on global economic developments, corporate strategy and regulatory issues. Since 2002 he has also been responsible for developing BA environmental and corporate responsibility policies. He joined BA in January 1998 from London Business School, where he was Director of the Centre for Economic Forecasting. Previous positions held include Head of Economic Policy (1986-88) and Director of Economic Affairs (1989-93) at the Confederation of British Industry (CBI). Dr Sentance was a founder member of the Treasury’s Panel of Independent Forecasters which provided advice to the Chancellor under the last Government. He has also acted as a government adviser on official statistics and corporate social responsibility. He was educated at Eltham College, Cambridge University (Clare College), and the London School of Economics, where he gained his PhD. He holds visiting professorships at Royal Holloway, University of London, and Cranfield University and is a former Chairman of the Society of Business Economists.

Andrew Sentance will be appointed with effect from 1 October 2006.

3. The Monetary Policy Committee makes operational decisions on interest rate policy. The Committee comprises the Governor of the Bank of England, the two deputy Governors, two members of the Bank with responsibility in the Bank for monetary policy and market operations and four outside members with relevant expertise who are appointed by the Chancellor. The Chancellor announced the establishment of the MPC as part of the new framework for monetary policy on 6 May 1997.

4. Members of the MPC are appointed to the Bank staff. However they may engage, with the permission of the Chancellor, in outside activities that do not present a conflict of interest.

5. Media enquiries should be addressed to the Treasury Press office on 020 7270 5238.

6. Non-media enquires should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558, or by e-mail to public.enquiries@hm-treasury.gov.uk

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