The Bank of England’s rate-setting team could be down to just seven members for the first time in nearly 11 years as election “purdah” rules will delay appointments until at least next month, it has emerged.
The Bank’s Monetary Policy Committee (MPC) is already down to just eight members from the usual nine after deputy governor Charlotte Hogg was forced to resign in March for failing to declare her brother works for Barclays.
External MPC member Kristin Forbes is also due to stand down at the end of June, while chief economist Andrew Haldane’s term ends at the end of May.
The Treasury is leading the recruitment, but it has put the process on hold as it is unable to make appointments during so-called purdah rules on government announcements during the election period.
While it is expected that Mr Haldane will continue in his post until his re-appointment can be confirmed, the delay to replacements for Mrs Hogg and Ms Forbes could see the smallest rates contingent since 2006.
The Bank will release its quarterly inflation report on August 3. Experts believe rates will remain on hold until at least 2019, with the latest official estimates showing growth was even slower than first thought at the start of 2017 at 0.2%.
Investec economist Philip Shaw said: “To our minds the direction of he economy is pretty clear at the moment.
“I’m not sure whether the decision-making process will be sensitive to specifics of one or two new members.”
