A pair of new deputy governors have been added at the Bank of England (BoE) in the most major reorganisation of the body in years.
Governor of the BoE Mark Carney is still putting his stamp on the organisation and has confirmed Ben Broadbent and Dr Nemat Shafik will join the Monetary Policy Committee (MPC), which is the body that sets interest rates for the UK.
The base rate has been held at a record low for the country of 0.5 per cent for the last five years, but speculation is growing that an increase could occur later this year or in 2015.
Mr Broadbent is set to become deputy governor responsible for monetary policy, while Ms Shafik becomes the only woman on the MPC and will take charge of markets and banking.
Speaking at Cass Business School, Mr Carney stated that the financial crisis was a "powerful reminder" to the Bank that in order to maintain economic stability it must to do more than just fight inflation – which is back under control and close to the government's two per cent target.
"These appointments result in a well-rounded senior management team at the Bank – one that will set the direction for an ambitious agenda of transformation for the institution and enable it to meet the challenges and opportunities it faces in maintaining monetary and financial stability," said Mr Carney.
Anthony Habgood has also been named as the chairman of court at the Bank and his is the third new appointment at BoE this week. He will also chair the Oversight Committee of Court.
Dr Shafik stated that she is excited to be joining the MPC "at such a critical time of institutional change" at the BoE, perhaps hinting at a future increase to interest rates.
When the MPC confirmed interest rates were being held earlier this month, Ray Boulger, of leading independent mortgage adviser John Charcol, described the announcement as a "foregone conclusion".
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.