Deputy Governor for Financial Stability, Sir Jon Cunliffe, delivered a speech to students at The University of Manchester this week where he discussed his career and current role at the Bank of England and explained the outlook for the UK economy.
Sir Jon, who graduated from the University in 1977 with a BA (Hons) English Language and Literature and MA Arts, discussed the factors that have influenced the level of interest rates over recent years and examined the policy challenges posed by a prolonged period of low underlying interest rates. Students were educated on the reasons why current rates are so low and why it is necessary to analyse the drivers of rates, including the trend real rate of interest and the natural real interest rate.
He went on to describe that the trend real rate is a longer-term measure which balances the demand for investment with the supply of saving when the economy is growing at trend. The natural real interest rate is a shorter-term concept and is necessary to offset the impact of unexpected shocks hitting the economy.
After his speech, Sir Jon was introduced to the University’s flagship policy@Manchester initiative which is a platform for researchers, academics and policy experts to discuss topical issues, and he learned about the University’s commitment to carrying out high impact research which engages with policy makers and aims to provide solutions to the world’s most pressing problems.
Ruth Ellul, Senior Development Officer, University of Manchester said, “It was a pleasure to welcome Sir Jon back to Manchester and we are delighted he was able to make the time in his busy schedule.
“After his lecture, Sir Jon met with students to offer personal reflections on his transition from arts to economics and provided ample encouragement and inspiration for current English students to consider their skills and degree as highly desirable by employers from a wide range of sectors – not just the obvious. As always, Sir Jon offered great inspiration to our students and we look forward to welcoming him again to Manchester in the near future.”