3 The role of the Deputy Governor
for Monetary Policy
10. There is no published job specification for
the post of Deputy Governor of the Bank of England to be taken
up by Charlie Bean. In considering Charlie Bean's appointment
as Deputy Governor, we therefore decided to concentrate on examining
the challenges he would face in his new post and how he proposed
to tackle those challenges. The Deputy Governor for Monetary Policy
is responsible for two areas of the Bank: Monetary Analysis and
Statistics (from which Charlie Bean has been promoted), and Markets.
11. The Monetary Analysis division is responsible
for providing the Bank with the economic analysis it needs to
discharge its monetary policy responsibilities. This includes
conducting research and analysis to inform the MPC's decisions
on setting interest rates.[11]
The main functions of the Markets area include:
conducting operations in the sterling money markets
to implement the Monetary Policy Committee's interest rate decisions,
while meeting the liquidity needs of the banking system as a whole;
managing the Bank of England's balance sheet; managing the United
Kingdom's foreign exchange reserves, as the agent of HM Treasury;
delivering financial market analysis and intelligence in support
of the Bank's monetary and financial stability missions; and contributing
to the management of financial and business continuity crises.
[12]
12. In our questionnaire, we asked Charlie Bean
we asked how he thought his new responsibilities would differ
from his previous responsibilities. He replied:
As Executive Director for Monetary Analysis and Statistics,
I carried the responsibility for day-to-day management of the
Bank's activities supporting the Monetary Policy Committee, including
the preparation of the Inflation Report and the projections
contained therein. Those activities absorbed a considerable fraction
of my time. My new role is more strategic in nature, and covers
both the Monetary Analysis and Statistics, and Markets directorates.
In my new role, I expect to have more time to devote to advancing
the Bank's communications agenda, both on monetary policy and
market operations. I also expect to participate in more international
meetings than is the case in my present role. Finally, I expect
to play a greater role in the Bank's management, including on
financial stability issues.
11 Bank of England, Annual Report 2007, May
2007, p 12 Back
12
Ibid. Back
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