The deputy governor, who also sits on the BoE’s Monetary Policy Committee, will ultimately be selected by Chancellor Jeremy Hunt.
Stephen Cohen, head of Europe, the Middle East and Africa at BlackRock, has been chosen to sit on the five-person advisory panel, which Investment Week understands is due to his private sector experience.
However, the advisory panels for the two most recent hires to the MPC have included figures only from the Treasury and BoE.
UK inflation falls to 4.6% in October
Megan Greene, who became an MPC member in July 2023, and Sarah Breeden, who became deputy governor for financial stability last month, did not face a figure from the private sector on their advisory panels.
Greene faced a three-person panel, headed by Clare Lombardelli, director general and chief economic adviser at the Treasury, while Breeden faced a four-person panel.
The panel is looking to replace Ben Broadbent, who is set to step down from the deputy governor role in June, with Cohen and others set to draw up a shortlist, interview selected candidates and make final recommendations to Hunt.
Carsten Jung, a senior economist at the Institute for Public Policy Research, who used to work at the BoE, told Bloomberg that the arrangement gave “the appearance of a conflict of interest — given the bank is responsible for policing the financial system and making a person who represents one of the most powerful players in the financial markets part of the recruitment process.”
Bank of England begins bond market stress test
A HMT spokesperson said: “The panel features five members who have diverse and extensive public and private sector expertise that they can bring to the collective recruitment process.
“Any conflict of interest between panel members and interviewees would be resolved as part of the due diligence process.”
BlackRock and the Bank of England declined to comment.
