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19 February 2010

Chancellor thanks Kate Barker for service to the Monetary Policy Committee

Kate Barker will step down from the Monetary Policy Committee when her current term expires on 31 May 2010. The Chancellor said:

“I would like to take this opportunity to thank Kate for the major contribution she has made since she joined the Committee. During this period, her perspective has been extremely valuable, both to the work of the Monetary Policy Committee and also to the Government through the independent reviews she has completed on housing supply and land use planning.”

Kate Barker’s position on the MPC will be advertised early in the next Parliament in order to maintain the integrity of the appointment process. It is likely that there will be a short vacancy on the MPC following this departure.

Notes for Editors

1. Kate Barker CBE was appointed as an external member of the Monetary Policy Committee with effect from 1 June 2001. From 1994-2001, Ms Barker was Chief Economic Adviser at the CBI. She was previously Chief European Economist at the Ford Motor Company (1985-1994), and before that a Research Officer at the National Institute of Economic and Social Research (1981-1985). Ms Barker was a member of Chancellor Clarke's Panel of Independent Economic Advisers 1996-97; and she was a non-executive Director of the Yorkshire Building Society (1999-April 2001). Ms Barker has published two independent reviews for the Government on housing supply (2004) and land use planning (2006).

2. Under the Bank of England Act 1998, external members are appointed by the Chancellor for terms lasting 3 years. In 2008, the Chancellor set out to the Treasury Select Committee measures to strengthen the procedure for future appointments to the MPC, consistent with the principles of open competition. These included a commitment to advertise vacancies and, as far as possible, allow the Treasury Select Committee sufficient time for pre-commencement hearings. The Banking Act 2009 amended the Bank of England Act 1998 to provide that external MPC members may serve for a maximum of 2 terms.

3. In accordance with the Bank of England Act 1998, the Governor of the Bank of England has announced, with the Chancellor’s agreement, the reappointment of Spencer Dale to the MPC when his term expires at the end of May 2010.

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