Monday, July 05, 2010
Weale joins the MPC
Posted by David Smith at 12:30 PM
Category: Thoughts and responses

weale.jpg

Martin Weale, director of the National Institute of Economic and Social Research, has been appointed to fill the vacant slot as external member of the Bank of England's monetary policy committee (MPC). Weale tussled with the previous government over the "golden rule" for fiscal policy, before the crisis and recession blew both Labour's fiscal rules away. He also developed the National Institute's monthly GDP estimates. The last National Institute quarterly review, in April, predicted a rise in unemployment to 2.7 million in 2011, and weaker growth than the Office for Budget Responsibility expects, even before the emergency budget.

He joins at an interesting time. Inflation is above target and there are hints of a slowdown in growth. The latest purchasing managers' index for services slipped from 55.4 to 54.4, against market expectations of 55.0. Still growing, but at its weakest pace for 10 months.