9:03 AM, 12th December 2014, About 9 years ago 1
The Bank of England has announced a raft of transparency, accountability and governance reforms to fulfill its mission to “promote the good of the people of the United Kingdom by maintaining monetary and financial stability.” This follows an independent report by former Federal Reserve Board Governor Kevin Warsh.
The news that most people will be aware of is that Monetary Policy Committee (MPC) meetings, that vote on what the Bank of England base rate should be, will now reduce to 8 per year instead of the current monthly meetings.
It was recommended by Governor Warsh that the Bank of England concentrate on the “Big 4” objectives: making sound policy decisions; communicating judgments effectively; ensuring accountability for its actions; and creating a fair and accurate historical record.
The MPC has subsequently announced the following changes:
The Bank of England also announced the following proposals:
Mark Carney, Govenor of the Bank of England, said “the Bank now has immense responsibilities for monetary stability, financial stability and for microprudential regulation. And with these responsibilities comes the need for effective transparency, genuine accountability and robust governance. Today I am pleased to announce the most significant set of changes to how we present and explain our interest rate decisions since the Monetary Policy Committee was formed in 1997.
Alongside those measures, we have also proposed a number of additional changes that will mark a step change in the governance of this institution. These changes will enhance our transparency and make us more accountable to the British people.”
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