So You Want to Be a Bank Economist?

A simple guide to what bank economists actually do, why their work matters and how students can prepare for this career path.

When you hear 'economist at a bank,' you might imagine someone staring at charts of inflation and saying serious things about interest rates. But that image is incomplete.

An economist at a bank is essentially the person who tries to answer one big question every day: What is happening in the economy and what will it mean for our money? 

What Does a Bank Economist Actually Do?

Take a large bank like JPMorgan Chase or HSBC. These institutions lend money, trade bonds and currencies, manage investments and advise companies. Every one of those activities depends on the broader economy: if inflation rises, interest rates may go up; if interest rates go up, bond prices fall; if bond prices fall, trading desks react; if companies struggle with higher borrowing costs, loan risks increase. The economist connects these dots.

On a typical day, a bank economist might:

● Analyse inflation data released by the government

● Track GDP growth trends

● Build forecasts for interest rates

● Write research notes for traders and clients

● Speak to journalists or investors about economic risks

According to the U.S. Bureau of Labor Statistics, employment for economists is projected to grow around 6% over the next decade. In large investment banks, economics research teams directly influence trading and investment strategies worth billions of dollars.

For example, when the Federal Reserve signals future rate hikes, economists at banks immediately assess how that affects bond yields, stock markets and currency values. Their reports often shape how traders position portfolios the very same day. The economist is the bank’s weather forecaster. But instead of rain, they forecast inflation, growth and policy shifts. 

How This Shows Up in Entry Level Jobs

First, the role sits at the intersection of data, writing and strategy. Those are three skills employers value across industries.

Second, economic uncertainty is rising globally. Inflation shocks, geopolitical risks, supply chain disruptions. According to the IMF, global growth remains below pre-pandemic averages. Banks are relying more heavily on internal research teams to interpret these risks.

Third, AI is changing how routine analysis is done.

Basic data collection and charting that once took hours can now be automated using tools like Excel with Python, LSEG Workspace/Bloomberg Terminal functions, or AI-assisted data summarization. That means entry-level economists are expected to go beyond copying numbers. They must interpret them.

In internships or junior roles, you might:

● Update economic models in Excel

● Pull data from Bloomberg or Reuters

● Draft short research notes

● Create charts showing inflation or employment trends

● Summarize central bank speeches

The key is learning how data connects to financial decisions. When inflation prints at 6% instead of 5%, that one percentage point can move bond markets by billions of dollars. Someone has to quickly explain why it happened and what it means next. That someone is often a junior economist supporting a senior one.

You are unlikely to be hired as 'Chief Economist' straight out of college. Instead, you might start as:

● Research analyst

● Economics associate

● Markets analyst

● Macro research assistant

At firms like Goldman Sachs or Barclays, junior economists spend much of their time cleaning datasets, updating forecasting models and writing the first draft of client notes. This is where AI becomes relevant.

Large language models can help summarize policy speeches or draft research outlines. Data tools can automate chart creation. But someone still needs to check accuracy, interpret trends and apply judgment. AI handles repetition. The economist handles reasoning.

If you can combine basic economic understanding with comfort using tools like Excel, Python, Power BI, or even AI chat assistants, you become far more employable. 

What really sets you apart here is your knowledge of econometrics. You should understand regression analysis, because much of macro research involves estimating relationships between variables such as inflation and unemployment. You should know what statistical significance means, how to interpret coefficients and why correlation is not causation. 

Time-series concepts are especially important. Learn about trends, seasonality, stationarity and simple forecasting models like ARIMA. Even knowing how to run an OLS regression in Excel, R, or Python and explain the output clearly will put you ahead of most entry-level applicants. 

Student Takeaways

If this career path interests you, here is what you should start doing today:

- Get comfortable with data: Learn Excel properly. Not just formulas, but pivot tables and data visualization. Then try basic Python for data analysis. Free datasets from government websites are enough to practice.

- Read economic news daily: Follow inflation releases, central bank decisions and GDP reports. Try explaining them in your own words. If you cannot explain it simply, you do not fully understand it yet.

- Practice writing clearly: Bank economists write constantly. Short, sharp, evidence-based notes. Try summarizing an RBI policy announcement in 200 words.

- Understand financial markets basics: Learn how bond prices move when interest rates change. Understand what a yield curve is. These are core tools.

- Use AI as a study partner: Ask it to quiz you on macro concepts. Use it to help structure reports. But never outsource your thinking.

The goal is to become someone who can translate economic signals into business decisions - a skill that will stay valuable for years.

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