Academic to replace Budd on Bank's MPC

SUSHIL WADHWANI, a partner in a hedge fund and formerly a high powered academic economist, will be joining the Bank of England's Monetary Policy Committee (MPC) in June in place of Sir Alan Budd.

The choice of Mr Wadhwani, who formerly worked for Goldman Sachs and lectured at the London School of Economics for eight years, is a clear signal that the Chancellor wants to keep the MPC a body of experts rather than one representative of industry. The MPC has been attacked by unions and business organisations for paying too little heed to the needs of industry.

Bank and Treasury insiders say Sir Alan has been one of the MPC's most important and influential members. He is regarded as one of the committee's interest-rate hawks, but the views of his successor are difficult to predict.

Sir Alan is stepping down from the MPC because of his appointment as Provost of Queen's College, Oxford. He had been due to retire from the Treasury, where he was chief economic adviser, when the Chancellor asked him to join the committee at a formative stage.

Economists will welcome the choice of an esteemed researcher as his successor. Mr Wadhwani specialised in analysing wage inflation and the jobs market before his move to the City. "He understands financial markets and the labour market. He is a well-rounded economist," said David Miles, professor of economics at Imperial College.

Chancellor Gordon Brown said: "He will bring not only recognised expertise in the field of labour market economics, but also considerable experience of the financial markets."

Mr Wadhwani has co-authored research papers with Mervyn King, now the Bank's deputy governor, and also with Lawrence Summers, the US Deputy Treasury Secretary.

In his most recent paper, Mr Wadhwani argued that US stocks were at least 20 per cent overvalued. The gloomy assessment caused a stir when it was published earlier this year.

Mr Wadhwani has resigned as director of research at Tudor Proprietary Trading, a hedge fund, and will move to the Bank on 1 June. Ian Plenderleith, one of the Bank's executive directors, is being reappointed to the MPC, it was also announced yesterday.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

As in 1942, Germany must show restraint over Greece

As in 1942, Germany must show restraint over Greece

Mussolini tried to warn his ally of the danger of bringing the country to its knees. So should we, says Patrick Cockburn
Britain's widening poverty gap should be causing outrage at the start of the election campaign

The short stroll that should be our walk of shame

Courting the global elite has failed to benefit Britain, as the vast disparity in wealth on display in the capital shows
Homeless Veterans appeal: The rise of the working poor: when having a job cannot prevent poverty

Homeless Veterans appeal

The rise of the working poor: when having a job cannot prevent poverty
Prince Charles the saviour of the nation? A new book highlights concerns about how political he will be when he eventually becomes king

Prince Charles the saviour of the nation?

A new book highlights concerns about how political he will be when he eventually becomes king
How books can defeat Isis: Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad

How books can defeat Isis

Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad
Judith Hackitt: The myths of elf 'n' safety

Judith Hackitt: The myths of elf 'n' safety

She may be in charge of minimising our risks of injury, but the chair of the Health and Safety Executive still wants children to be able to hurt themselves
The open loathing between Barack Obama and Benjamin Netanyahu just got worse

The open loathing between Obama and Netanyahu just got worse

The Israeli PM's relationship with the Obama has always been chilly, but going over the President's head on Iran will do him no favours, says Rupert Cornwell
French chefs get 'le huff' as nation slips down global cuisine rankings

French chefs get 'le huff' as nation slips down global cuisine rankings

Fury at British best restaurants survey sees French magazine produce a rival list
Star choreographer Matthew Bourne gives young carers a chance to perform at Sadler's Wells

Young carers to make dance debut

What happened when superstar choreographer Matthew Bourne encouraged 27 teenage carers to think about themselves for once?
Design Council's 70th anniversary: Four of the most intriguing prototypes from Ones to Watch

Design Council's 70th anniversary

Four of the most intriguing prototypes from Ones to Watch
Dame Harriet Walter: The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment

Dame Harriet Walter interview

The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment
Art should not be a slave to the ideas driving it

Art should not be a slave to the ideas driving it

Critics of Tom Stoppard's new play seem to agree that cerebral can never trump character, says DJ Taylor
Bill Granger recipes: Our chef's winter salads will make you feel energised through February

Bill Granger's winter salads

Salads aren't just a bit on the side, says our chef - their crunch, colour and natural goodness are perfect for a midwinter pick-me-up
England vs Wales: Cool head George Ford ready to put out dragon fire

George Ford: Cool head ready to put out dragon fire

No 10’s calmness under pressure will be key for England in Cardiff
Michael Calvin: Time for Old Firm to put aside bigotry and forge new links

Michael Calvin's Last Word

Time for Old Firm to put aside bigotry and forge new links