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LONDON (Reuters) - The woman who carried out Governor Mark Carney's overhaul of the Bank of England will become a deputy governor, giving her a role in overseeing the stability of financial markets as Britain prepares to leave the European Union.
Charlotte Hogg will replace Minouche Shafik as the bank's top official for markets and banking, putting her in charge of BoE's newly expanded bond-buying programme. She will also take a seat on the bank's interest rate-setting committee.
"Charlotte has done an excellent job as the Bank's first Chief Operating Officer," finance minister Philip Hammond said in a statement. "She will take over this new role at a key time for the City."
Hogg, 46, comes from a family which has produced several generations of senior Conservative politicians and judges. She began her career at the BoE as a trainee and rejoined it in 2013, around the time of Carney's arrival as governor, when she became its first chief operating officer, a role she will continue to play.
As COO, she oversaw a restructuring of the bank to bring its monetary policy and bank regulation arms closer together.
Before returning to the BoE, she worked at McKinsey & Company, where she was a principal in financial services, and at Morgan Stanley, where she was managing director of strategic planning.
Carney has stressed the importance of promoting more women to top jobs at the BoE.
The bank has four deputy governors, three of whom are men. As deputy governor for markets and banking, Hogg is responsible for the central bank's dealings with financial markets, payment systems and foreign exchange and gold reserves, but is not in charge of financial regulation.
Also on Thursday, the BoE said Kristin Forbes, one of the nine members of its Monetary Policy Committee, would return to her academic career in the United States when she completes her three-year term on the MPC on June 30.
Forbes has been the most sceptical of the MPC's nine rate-setters about the need to pump more stimulus in Britain's economy after it withstood the shock of last year's Brexit vote better than the BoE and investors expected.
On Tuesday she said she was increasingly uncomfortable with the BoE's willingness to tolerate a significant overshoot of its inflation target even though growth had yet to slow, and that there might soon be a case to raise interest rates.
British government bond futures hit a session high after the announcements and sterling weakened.
Shafik said in September she would leave the BoE to become director of the London School of Economics.
The appointment of Hogg, who starts her five-year term on March 1, was the first monetary policy appointment by Hammond since he became finance minister last year.
She will also sit on the Bank's Financial Policy Committee, which seeks to reduce the risks to Britain's economy from its banking industry, and on its Prudential Regulation Committee.
Writing by William Schomberg; Editing by Kate Holton and Andy Bruce