Jonathan Haskel to join Bank of England's rate setting committee

The Treasury has named an economics professor from London’s Imperial College Business School as the newest member of the Bank of England’s Monetary Policy Committee.

Jonathan Haskel will take up his role on the nine-strong interest-rate setting committee on 1 September. He replaces Ian McCafferty, who has sat on the committee for a total of six years and been among a small minority voting for interest rate hikes in recent meetings.

The Chancellor of the Exchequer, Philip Hammond, said he was “delighted” with Prof Haskel's appointment, adding that his “expertise in productivity and innovation will further sharpen the committee’s understanding of the British economy”.

Martin Beck, lead UK economist at Oxford Economics, said Prof Haskel’s public announcements had to date been “light as far as his views on monetary policy are concerned”.

But he added: “We do know that he will be replacing one of the most consistently hawkish members of the MPC. Mr McCafferty has been in a minority of two in voting for an immediate rate hike in the last two meetings. Prof Haskel’s interest in, and arguably positive slant on, the economy’s supply side suggests that he may take a move dovish view of the need for higher rates.”

The first interest rate rise in over a decade was announced last November, and the Bank has already signalled that it raise rates again as it balances inflation and improved economic conditions with high levels of debt.

“His appointment adds a bit more strength to our view that the MPC will pursue a slow pace of tightening over the medium term, with only one rate hike expected next year,” said Beck.

Prof Haskel was the only man on a five-strong shortlist for the seat. The Bank recently came under fire for a perceived lack of diversity after deputy governor and MPC member Ben Broadbent said the UK economy was having a “menopausal moment”.

In a statement, the Treasury said it was committed to appointing a diverse range of people to public appointments, including at the Bank of England, and that it “continues to work to attract the broadest range of suitable applicants for posts”.

Prof Haskel will teach part-time at Imperial College after taking up his seat. The MPC meets eight times a year to set monetary policy and vote on interest rates.