Chancellor Rachel Reeves has reappointed Megan Greene as an external member of the Bank of England’s Monetary Policy Committee, extending her term from 4 July 2026 to 4 July 2029. The Treasury framed the move as stability at a sensitive point for the economy. The Bank’s governor Andrew Bailey also welcomed the continuity.

For rate‑setters and markets, the timing matters. On 5 November the MPC voted 5–4 to hold Bank Rate at 4%, with the next decision due on Thursday 18 December 2025. A narrow split keeps investors focused on every data print between now and year‑end.

Greene has argued for a careful pace of easing through 2025. In August she was among four members who preferred to keep Bank Rate at 4.25% when the majority opted for a quarter‑point cut; in September she joined the majority holding at 4%. That pattern points to a steady hand rather than rapid shifts.

Her November vote to hold came with a clear message. Greene warned that wage growth and inflation expectations could slow the disinflation process and said policy may not yet be restrictive enough to guarantee a durable return to target. That places her in the cautious camp on near‑term cuts.

Outside the formal votes, her recent speechwork has been consistent. In September she set out why repeated supply shocks can keep prices sticky and said rate reductions should proceed carefully to avoid reigniting price pressures. That stance now stays on the committee through 2029.

The Bank’s own November report signals the route from here: if disinflation continues, Bank Rate is likely to move lower on a gradual path rather than in big steps. Bailey echoed that line at his press conference, pointing to a measured downtrend.

The inflation backdrop helps explain the caution. CPI inflation stood at 3.8% in September-about double the 2% target-with services inflation still in the mid‑4s. The Office for National Statistics will publish October’s reading on Wednesday 19 November.

Markets are again toying with the idea of a December cut, but the split vote underlines how data‑dependent the next move is-especially with the Budget set for Wednesday 26 November, which could reshape near‑term fiscal assumptions.

For households and SMEs, Greene’s reappointment reduces guesswork. Continuity on the MPC tends to limit surprises, which in practical terms points to a slower, steadier easing cycle and a closer eye on services prices and pay settlements before borrowing costs drift down.

Greene also brings a cross‑Atlantic profile that retail investors often value. She is a Senior Fellow at Brown University’s Watson Institute and at Chatham House, teaches at London Business School, and previously served as Global Chief Economist at Kroll and at John Hancock Asset Management; she has also written for the Financial Times.

Her renewed term will straddle a change at the top of the Bank: Governor Andrew Bailey’s eight‑year mandate ends on 15 March 2028, so Greene will sit across the handover to the next governor. That continuity often helps anchor expectations during leadership transitions.

Process matters too. External MPC members are appointed by the Chancellor for up to two three‑year terms, with reappointments considered on merit under the Governance Code for Public Appointments. HM Treasury records that Greene has undertaken no political activity in the past five years.