The newest member of the Bank of England’s rate-setting committee will face tough questions from the Treasury select committee after it emerged that he has retained a financial link to a hedge fund, raising concerns over a potential conflict of interest.
Gertjan Vlieghe, who has recently stepped down as a partner and senior economist at Brevan Howard Asset Management, the macro hedge fund, will become an external member of the Bank’s nine-strong monetary policy committee (MPC) in September and will be paid £137,787 a year for the three- day-a-week position.
Mr Vlieghe’s appointment is likely to cause the Bank and Treasury a huge headache after it was revealed that he will continue to receive annual payments from Brevan Howard, which bets on interest rates, as