JEREMY PEAT, the chief economist of the Royal Bank of Scotland with close Kent links, is retiring.

Dr Andrew McLaughlin, his deputy, replaced him on New Year's day.

Mr Peat, who went to school in Cranbrook, has been group chief economist for the past 12 years. He grew up in the county and has been a guest speaker at numerous events in Kent and Medway over the years.

He will remain with the group until his retirement at the end of March 2005 when he celebrates his 60th birthday.

The Government has announced Mr Peat's appointment to the BBC's Board of Governors as National Governor for Scotland.

Mr Peat said: "In my time as group chief economist the Royal Bank of Scotland has grown from a relatively small regional bank to the sixth largest financial services company in the world.

"That success story is all due to the vision and hard work of the superb people who work for the group."

Dr McLaughlin said: "I am obviously delighted to be taking on this role for an organisation of RBS' stature. Jeremy has been an extremely successful Group Chief Economist.

"His wise counsel and insight into both economic policy and trends have been greatly valued by our businesses, our customers and economic commentators."