Goldman Sach’s Broadbent replaces Sentance on MPC

Goldman Sachs European economist Ben Broadbent will replace Andrew Sentance as external member of the Monetary Policy Committee (MPC).

Broadbent, who has previously worked at the Treasury and the Bank of England (BoE), will begin in his new role on 1 June 2011.

All eyes will be on the newest MPC member to see which position he takes on the economy in the highly divided Committee.

In March 2010, Broadbent and Goldman Sachs colleague Kevin Daly published a report in which they claimed the UK left recession in mid-2009. Official figures from the ONS reported Britain was in recession until January 2010.

Goldman Sachs has been repeatedly more optimistic about the UK economy than other investment banks, suggesting Broadbent may vote for interest rate rises.

Super-hawk Sentance, who Broadben will replace, has repeatedly called for the BoE to raise interest rates.

He will leave the MPC on 31 May after serving on it for five years.

Chancellor George Osborne says he welcomes Broadbent's broad professional experience in the financial sector and academia.

"His detailed knowledge of the UK economy, will be extremely valuable to the Committee."

The Chancellor also thanked Sentance for his "original analysis" and contributions to the MPC.