In addition, the Chancellor and the Governor have agreed to appoint Dr Nemat Shafik as deputy governor of the Bank of England responsible for markets and banking.
The appointments of Habgood and Dr Broadbent are effective 1 July 2014. The appointment of Dr Shafik is effective 1 August 2014.
Habgood, who was appointed for a renewable term of four years, will succeed current chair Sir David Lees, who will leave at the end of June. As chair of the bank’s Court of Directors, he will lead Court in its responsibility for managing the affairs of the bank, other than the formulation of monetary policy and will also chair the Oversight Committee of Court.
As the Bank’s deputy governor for monetary policy, Dr Broadbent will have specific responsibility for the bank’s research and analysis of the UK economy in support of Monetary Policy Committee (MPC) decisions and for the provision and distribution of bank notes that are secure against the threat of counterfeiting.
He will sit on the bank’s Court of Directors, the Monetary Policy Committee and the Financial Policy Committee and is also responsible for chairing MPC in the event of the Governor’s absence.
As deputy governor for markets and banking, reporting directly to the governor, Dr Shafik will provide greater focus at the very top of the bank on these two core policy areas. The government has indicated its intention to place this appointment on a statutory basis in due course.
Once formalised, Dr Shafik will hold seats on the MPC, the Financial Policy Committee (FPC) and the Court of Directors. In addition, the Court of the Bank will appoint the Dr Shafik to the board of the Prudential Regulation Authority.