Rate hawk Goodhart is replaced by academic

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The Independent Online

Charles Goodhart, one of the nine members of the Monetary Policy Committee, will stand down at the end of May, the Treasury announced last night.

He will be replaced by Christopher Allsopp, a Fellow of New College, Oxford, and a member of the Court of Directors of the Bank of England.

Professor Goodhart's term expires at the end of May. The Treasury declined to discuss whether the professor had sought reappointment. Gordon Brown, the Chancellor, said he was very grateful for his contribution.

Critics of the MPC had called for the Treasury to appoint more people with direct experience of industry. The 1997 Bank of England Act specifies only the four independent members must have "knowledge or experience which is likely to be relevant to the committee's functions".

Mr Allsopp is a specialist in international macroeconomics and his career has included a spell at the Organisation for Economic Cooperation and Development as well a number of consultancy posts with overseas governments and UK bodies.He must now resign as a member of the Court of the Bank and his replacement will be announced later this month.

According to one analyst, industry may have cause to celebrate. "He's a dove," said Douglas McWilliams, of the Centre for Economics and Business Research. Professor Goodhart, in contrast, voted for a rate hike in 12 of his 35 meetings, a record only surpassed by Mervyn King and Willem Buiter.