Kate Barker to step down from Monetary Policy Committee

BANK of England interest rate setter Kate Barker is to step down from the monetary policy committee (MPC) after nine years, it was announced yesterday.

Barker will quit the MPC when her current term ends on 31 May and her position will be advertised early in the next Parliament, according to the Treasury.

In a separate announcement, the bank also confirmed that MPC member Spencer Dale – executive director of monetary analysis and statistics and chief economist at the central bank – has been re-appointed for a further three-year term from the end of May.

He has been a member of the MPC since July 2008.

Chancellor Alistair Darling thanked Barker for her service as one of the UK's nine policymakers at the Bank of England.

She joined the MPC as an external member in June 2001 and has also led two UK government-commissioned reviews of housing supply and land, published in 2004 and 2006.

Darling said: "I would like to take this opportunity to thank Kate for the major contribution she has made since she joined the committee.

"During this period, her perspective has been extremely valuable, both to the work of the MPC and also to the UK government through the independent reviews she has completed on housing supply and land use planning."

The Treasury added it expects there will be "a short vacancy on the MPC" following her departure.

Barker was chief economic adviser at the CBI from 1994 to 2001. She was chief European economist at Ford between 1985 and 1994, before which she was a research officer at the National Institute of Economic and Social Research, from 1981 to 1985.