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CBI economist replaces dove on MPC

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The Bank of England is appointing Confederation of British Industry chief economist Kate Barker to its nine member monetary policy committee.

Barker will replace DeAnne Julius, who has finished her three year term.

Julius was well known for being one of the MPC&#39s most outspoken doves, wanting to keep interest rates high.

Industry sources believe Barker will be sympathetic to the needs of industry and her appointment confirms hopes that interest rates could be down to 5 per cent by the end of the year.

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