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The deputy governor of the Bank of England, Rupert Pennant-Rea, has tendered his resignation. ...
The deputy governor of the Bank of England, Rupert Pennant-Rea, has tendered his resignation.

In a statement issued today bank governor Eddie George said:

'The deputy governor has today tendered his resignation. I understand the reasons for his decision, and greatly respect his determination to minimise any damage to the Bank.

'It is a matter of deep personal regret to me that Rupert has felt it necessary to resign. In the short time that he has been at the bank, he has made an immense contribution to our policy work, and, in particular, has brought an outsider's perspective to the administration of the bank.

'He has been instrumental in restructuring the internal organisation of the bank to reflect our essential objectives, and in reinvigorating our internal management. In these respects especially, his contribution, although sadly a brief one, has been quite outstanding and will prove to be lasting.'

Letter from the deputy governor to the chancellor:

'I have decided to resign. I do so with great regret, but I want to avoid the possibility of the bank being damaged by some foolish mistakes that I made, albeit more than a year ago.

'I took this job for two main reasons. First, because I dearly wanted British monetary policy to escape from the cycle of inflationary fixes. I feel that as strongly as ever, and I am more optimistic about the chances of avoiding a serious error than I have been since I came to this country almost 30 years ago.

'In that crucial sense, I have been privileged to be part of the new approach to monetary policy that you and your predecessor have introduced.

'Second, I thought that Britain would benefit from greater job mobility between the private and the public sectors. I was therefore particularly grateful for the chance to make such a move.

'But I do know that many good people in the commercial world are put off by the tabloid intrusion into the private lives of those in public positions. After the events of the past few days, this reluctance to move will increase. Montagu Norman once said that 'the dogs bark, but the caravan moves on'. I'm sorry to be leaving it, but I wish you well.'

Letter from the chancellor to the deputy governor:

'I am very sorry indeed that you have decided to resign. You have been closely involved with the development of our new approach to monetary policy and I have enjoyed working with you immensely.

'You have done an exceptional job as deputy governor. I am particularly grateful for the hard and effective work that you put into the Barings crisis.

'I am sorry that you feel that tabloid intrusion is increasingly discouraging the movement of good people from the commercial world to the public sector. I would view this with great regret. I wish you all the very best for the future.'

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