Who is Clare Lombardelli, the new deputy governor of the Bank of England?

The Bank of England has appointed Clare Lombardelli as the new deputy governor, succeeding Ben Broadbent on the Monetary Policy Committee (MPC).

Taking on her new role on July 1, Lombardelli is an OECD chief economist who will be responsible for overseeing UK monetary policy and research. She will also monitor the institution’s monetary policy functions.

Lombardelli will be joining the bank at a key turning point, as it seeks to quell an inflationary outbreak triggered by the COVID-19 lockdowns.

Is Lombardelli right for the job?

Lombardelli has worked in government since 2005, after starting her career as an economist at the Bank of England.

As part of her time in government, she was a Treasury official and adviser to David Cameron. She has also been the Principal Private Secretary to the Chancellor of the Exchequer and Deputy Director for Labour Market Policy.

Amongst her other credentials, Lombardelli was working for the International Monetary Fund, where she was part of a team based in the Greek finance ministry to monitor bailout during the 2010 and 2011 Euro Crisis.

The Chancellor, Jeremy Hunt, praised “Clare brings significant experience to the role of tackling financial and economic issues both domestically and internationally.”

The challenges that lie ahead

Lombardelli will have a seat at the MPC for the next five years, which may prove difficult as the UK continues to grapple with persistent inflation.

The pressure to cut the cost of borrowing to support the economy’s exit from a recession that worsened in the second half of 2023 will be on. Financial markets expect the Bank to begin cutting interest rates in the summer to ease pressure on mortgage payers and indebted businesses.

Beyond controlling inflation, the MPC will have to navigate any stress to the economy stemming from the upcoming general election this year.

Despite the challenges, Andrew Bailey, Governor of the Bank of England, has confidence in her appointment.

“Clare’s impressive career means she brings a huge amount of relevant experience and expertise to the Monetary Policy Committee, and the Bank more broadly, at a time of great importance for the UK economy.”