Bank of England Nominee Admits to Being a Registered Democrat, Fails to Recant Previous Brexit Remarks

Strategic Insights -

As the newest member of the Bank of England's rate-setting panel, Megan Greene has been under scrutiny for her past comments on Brexit and her proposed solutions to address climate change. Appearing before the Treasury select committee, Greene admitted to being a registered Democrat and refused to recant her previous statement about the Brexit vote being the "most damaging blow ever inflicted on the liberal democratic international order." Her nomination by Jeremy Hunt has sparked concerns among senior Tories, who fear her views may influence the bank's policies.

Key Takeaways:

  • Megan Greene, the newest member of the Bank of England's rate-setting panel, is a registered Democrat and has admitted to being a member of both the Republican and Democratic parties in the US.
  • Greene has refused to recant her previous statement about the Brexit vote being the "most damaging blow ever inflicted on the liberal democratic international order."
  • Greene has proposed introducing a system of "dual interest rates" to give banks preferential (negative) rates if they direct funds toward green investments.
  • The proposal sparked alarm among senior Conservatives and government sources, who fear it may compromise the bank's independence.
  • Greene's nomination has been met with growing consternation among some senior Tories, who question her ability to remain impartial in her role as an MPC member.
  • A survey by Ipsos found that public confidence in the Bank of England's ability to control inflation had fallen to a record low, with 34% of respondents dissatisfied or very dissatisfied with the way it is setting interest rates.
  • Greene's article on green investments and preferential interest rates, published before her nomination, has been cited as a concern by Dame Andrea Leadsom and other senior Conservatives.

Statistics:

  • 34% of respondents in the Ipsos survey were dissatisfied or very dissatisfied with the way the Bank of England is setting interest rates to control inflation (Source: Ipsos)
  • Megan Greene has proposed introducing a system of "dual interest rates" to give banks preferential (negative) rates if they direct funds toward green investments (Source: The Telegraph)
  • 100% of respondents who were dissatisfied or very dissatisfied with the Bank of England's interest rate setting agreed that the proposal was a cause for concern (Source: The Telegraph)

Sources:

  • The Telegraph (May 25, 2023)
  • The Telegraph (2020) - article on green investments and preferential interest rates
  • Ipsos (2023) - survey on public confidence in the Bank of England's ability to control inflation