Charlie Bean will be the new deputy governor for monetary policy at the Bank of England, The Telegraph reports.
It also confirms that Spencer Dale will replace him as chief economist at the central bank.
Dale, 41, a senior economist at the Bank who has been on secondment to the Federal Reserve, will become the newest member of the Monetary Policy Committee from its next meeting in July.
He is known for his work on creating the Bank of England’s Quarterly Model (BEQM) of the economy which is used to make forecasts, and is highly regarded by Bean and Governor Mervyn King.
Bean, the chief economist since 2000, replaces Rachel Lomax, who is stepping down after five years.
The appointments come at a crucial time for the MPC, on which both the deputy governor and chief economist serve, as inflation is way above the Bank’s target and growth is slowing.
Many consider Paul Tucker, the Bank’s director for markets, as the prime contender for John Gieve’s job as deputy governor.
“By next spring, therefore, there could be a majority on the MPC whose career advancement owes a good deal to the Governor,” says Michael Hume, economist at Lehman Brothers. “This is likely to tighten the Governor’s grip on the committee and may result in a more hawkish monetary policy stance, given Mervyn King’s consistently hawkish voting record.”