U.K. Treasury Seeks Head of Monetary Policy

Wanted: a monetary policy expert to help support the relationship between the U.K. government and the Bank of England.

The Treasury is hiring an official to ensure the coordination of monetary and fiscal policy and explore ways the central bank’s remit can support the government’s economic objectives. The Treasury said the advert is to find a replacement for a long-standing role.

The job opening for a head of monetary policy comes after a year in which policy makers at the Treasury and BOE have worked closely together to fight the economic impact of the pandemic, drawing praise from the International Monetary Fund as one of the “one of the best examples of coordinated action” in the world.

Still, that level of cooperation has already raised questions over the BOE’s operational independence from the government, which was granted in 1997, and those concerns may mount should the Treasury make changes to the BOE’s remit that are seen as overly political.

The government sets the BOE’s main goal, which is hitting the 2% inflation target, and doesn’t interfere with the central bank’s actions to achieve it. That’s designed to prevent any government from being tempted to use interest rates to generate economic growth to help win elections.

However, rates are currently at record lows near zero and the BOE’s main tool is buying government bonds. That keeps the Treasury’s borrowing costs low even as it ramps up spending to fight the slump.

According to the job description, posted on the civil service website, the role will pay between 52,500 pounds ($72,000) and 57,000 pounds, and include:

  • Advising the chancellor on the evolution of the U.K.’s monetary policy framework, and exploring policy options for the remit of the Monetary Policy Committee to support the delivery of the government’s economic objectives
  • Advising the chancellor on U.K. monetary policy developments
  • Ensuring the coordination of monetary and fiscal policy by supporting the chief economic adviser in their role as Treasury representative to the MPC and the chancellor’s discussions with the governor of the BOE
  • Leading the branch’s analysis on the economic and operational implications of monetary policy decisions, and potential future monetary policy tools
  • Supporting the Treasury’s chief economic adviser in appointing external members to the MPC

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