Silvana Tenreyro appointed to Bank of England’s MPC

Silvana Tenreyro, an academic at the London School of Economics, has been appointed as the newest member of the Bank of England’s monetary policy committee.

Ms Tenreyro will join the nine-strong MPC as an external member, replacing US economist Kristin Forbes who departs the BoE at the end of the month.

The appointment of Ms Tenreyo will make her the only woman on the MPC following the resignation of Charlotte Hogg and departure of Minouche Shafik earlier this year.

According to her CV, Ms Tenreyro joined the LSE in 2004 and most recently held the position of professor of economics.

She has also served as an external member of the central bank of Mauritius and has a worked at the US Federal Reserve Bank of Boston. Ms Tenreyro has a PhD in economics from Harvard University and began her studies at the National University of Tucuman in Argentina.

The 43-year old holds British, Argentine and Italian citizenship and is married with two children.

Economists and analysts will be looking out for any clues about Ms Tenreyro’s view on monetary policy and the UK economy. She was part of the FT’s annual survey of economists at the end last year, where she said a hard Brexit would “have a substantial effect on immigration flows and possibly emigration”.

“The effects on the UK economy will certainly be negative—many firms will need to rethink and reorganise production as they lose talented workers”, she said.

Commenting on the appointment, Mark Carney, BoE governor, said:

I am delighted to welcome Silvana Tenreyro to the Monetary Policy Committee and am very much looking forward to working with her.

Her extensive and varied academic experience – on the monetary transmission mechanism, the dynamics of productivity, trade, housing issues as well as wage dynamics, to name just a few ­– will be invaluable to the Committee as it seeks to promote the good of the people of the United Kingdom through maintaining monetary stability.

Chancellor Philip Hammond said:

I am delighted to appoint Professor Silvana Tenreyro as the new external member of the Monetary Policy Committee at the Bank of England.

I am confident that Professor Tenreyro will be a strong addition to the MPC, bringing a wealth of economic experience and academic rigour to the Committee’s deliberations.

In her last decision as a rate-setter, Ms Forbes was one of three MPC members to vote for a rate-hike last week – marking the most significant hawkish move since 2011.

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With inflation breaching its target, the UK economy slowing, and Brexit talks beginning, Ms Tenreyro is joining the BoE at a “critical point” said Elizabeth Martins at HSBC.

“Markets will now be looking for clues in Dr Tenreyro’s previous work as to how much sympathy she might have with the hawkish views of her predecessor”, said Ms Martins.

The appointment was made by the Treasury. There were 31 applications for the post.

Image: LSE