The Bank of England’s (BoE) Monetary Policy Committee (MPC) has named Dr Swati Dhingra as an external member for a three-year term, effective 9 August.
He will replace the current external member Michael Saunders, who has been on the MPC since August 2016.
Dhingra is an associate professor of economics at the London School of Economics, specialising in international economics and applied microeconomics.
Commenting on the appointment, the Chancellor of the Exchequer Rishi Sunak says: “Dr Swati Dhingra’s experience in international economics will bring valuable new expertise to the MPC. I am delighted to appoint her to this role and look forward to seeing her contribution to policymaking in the coming years.”
“I would also like to thank Michael Saunders for all his work since he joined the Bank of England, and wish him the best in the next stage of his career.”
BoE governor Andrew Bailey adds: “I am very pleased to be welcoming Dr Swati Dhingra to the MPC later this year. Her insights and perspective will be hugely beneficial to all of our discussions and we will benefit from her extensive research in international economics.
“Michael Saunders has been a great asset to the MPC and I would like to thank him for all his work on the committee. I wish him all the best for the future.”
Earlier this week, Saunders warned that inflation may exceed the 10% peak forecast for Q4 2022 in the latest monetary policy report (MPR).
The statement came from a speech given at the Resolution Foundation on 9 May.
In it, he explained that the MPR forecast assumes several economic factors, including weakness in spending, cuts in employee hiring – with unemployment rising – and supply chain problems easing.
As well as the headline-grabbing 10% number, this forecast expects inflation to fall to “slightly above” 2% two years later.
However, Saunders details a belief – a ‘hunch’, as he puts it – that demand will be more resilient than the MPR forecast calculates.
He explains: “For example, if consumers regard this year’s squeeze on real incomes as a one-off, they may be more likely to reduce their savings to a greater extent over the forecast period (supporting consumption).”
