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18 Mar 2014
Flash: New deputies appointed to the Old Lady - TDS
FXStreet (Guatemala) - Strategists at TD Securities noted that the HM Treasury announced two new Deputy Governors for the BoE this morning.
Key Quotes:
“Ben Broadbent had been the favorite to replace Charlie Bean as Deputy Governor for Monetary Policy, and will start in that role on July 1, which will require a search for a new external member of the MPC to replace Broadbent's spot. Nemat Shafik comes from the IMF and replaces Paul Fisher as Deputy Governor for Markets and Banking, to start August 1”.
“Both will sit on the MPC and FPC, with Nemat Shafik representing the BoE at international functions and provides the first woman on the MPC since Kate Barker in 2010. She also brings her IMF experience managing the European response, which was something the BoE was keen to bring in”.
“In terms of her voting bias, you really don't have much to go on as she has never been in that role, though the expectation would be a cautious attitude on Europe, which remains a large downside risk for much of the MPC. The final piece of the voting puzzle for the coming year, when the BoE is expected to begin tightening, will have to wait for the appointment of a new external member. Both Broadbent and Shafik likely become the favourites to replace Carney as Governor at this stage when his term ends in 2018”.
Key Quotes:
“Ben Broadbent had been the favorite to replace Charlie Bean as Deputy Governor for Monetary Policy, and will start in that role on July 1, which will require a search for a new external member of the MPC to replace Broadbent's spot. Nemat Shafik comes from the IMF and replaces Paul Fisher as Deputy Governor for Markets and Banking, to start August 1”.
“Both will sit on the MPC and FPC, with Nemat Shafik representing the BoE at international functions and provides the first woman on the MPC since Kate Barker in 2010. She also brings her IMF experience managing the European response, which was something the BoE was keen to bring in”.
“In terms of her voting bias, you really don't have much to go on as she has never been in that role, though the expectation would be a cautious attitude on Europe, which remains a large downside risk for much of the MPC. The final piece of the voting puzzle for the coming year, when the BoE is expected to begin tightening, will have to wait for the appointment of a new external member. Both Broadbent and Shafik likely become the favourites to replace Carney as Governor at this stage when his term ends in 2018”.