Saturday, July 30, 2022
No Result
View All Result
TimesNewsNetworks.com
  • Home
  • World
    • Politics
    • U.S.
    • Opinion
  • Business
  • Energy
  • Health
  • Science
  • Tech
  • Sports
  • Food
  • Arts
  • Style
  • Books
  • Real Estate
  • Magazine
  • Travel
  • Video
  • Home
  • World
    • Politics
    • U.S.
    • Opinion
  • Business
  • Energy
  • Health
  • Science
  • Tech
  • Sports
  • Food
  • Arts
  • Style
  • Books
  • Real Estate
  • Magazine
  • Travel
  • Video
No Result
View All Result
TimesNewsNetworks.com
No Result
View All Result

BoE bans MPC members from having private meetings with bankers

October 13, 2021
in Business
Reading Time: 2 mins read
A A

The Bank of England has banned its Monetary Policy Committee members from having private discussions with bankers after rumours swirled that a deputy governor had revealed policy information in a recent meeting with an investment bank.

Market traders have been excited for a week about rumours that Ben Broadbent, deputy governor for monetary policy, had ruled out an interest rate rise at the coming November MPC meeting in a private gathering with bankers.

The central bank said that Broadbent had provided no information that was not publicly available in minutes of previous meetings and expressed irritation that a false impression was circulating in financial markets.

To avoid what it described as inaccurate reports of officials’ words in future and to improve transparency, it confirmed a Reuters story that it had cancelled all future meetings between MPC members and banks.

The BoE declined to release a statement but indicated that, in future, officials would gather intelligence of what was happening in financial markets rather than MPC members themselves.

Many MPC members have thought meetings with bankers were useful to understand concerns in markets, but the practice of meeting close contacts has often allowed rumours to emerge and prompted accusations by traders and economists of favouritism and selective disclosure.

In a note this week, Allan Monks, UK economist at JPMorgan, wrote that “Ben Broadbent is speculated to have pushed back on a November hike due to a desire to see more jobs data, although that would still leave the subsequent meeting live”.

Richard Barwell, head of macro research at BNP Paribas Asset Management, welcomed the BoE’s move saying the banning of meetings with the MPC was “a good outcome for all concerned”.

He suggested the bank should be even more transparent. “There would be no interest in attending these meetings and nothing more for policymakers to say if the BoE adopted a policy of full disclosure and published the contents of the internal policy debate in its entirety, including the outlook for interest rates”.

Sensitivities over the BoE’s monetary policy stance have intensified in recent weeks after the September minutes of the MPC meeting said that the first rate rise could happen this year even as the bank was continuing with purchasing assets under the quantitative easing programme.

The minutes also said the committee saw the benefit in waiting for more information on the effect of the end of the furlough scheme before taking any action, which will not be included in official data before the November meeting.

The BoE said it had been considering a ban on these meetings before the latest rumours, as a result of similar sensitivities in the eurozone after private comments regarding inflation from the European Central Bank’s chief economist, Philip Lane, were reported in the Financial Times.

The results of the BoE’s next MPC meeting will be published on November 4. Financial markets do not expect the BoE to raise interest rates from the current historic low of 0.1 per cent at that meeting, but increasingly believe that a rise to 0.25 per cent is possible at the December meeting.

Credit: Source link

ShareTweetSendPinShare

Related Posts

Business

Boss of UK accounting watchdog says EY split would bring benefits

July 30, 2022
Business

Rolls-Royce’s new CEO says focus will be on opportunity and strategic clarity

July 30, 2022
Business

Sunak says he will call out ‘poor leadership’ in NHS

July 29, 2022
Business

When elites are too effective for their own good

July 29, 2022
Business

Pride of the nation: Can the Lionesses tackle the challenges still facing the game?

July 29, 2022
Business

Pawnbroking surges in UK amid cost of living squeeze

July 29, 2022
Business

Liz Truss, a restless radical aims for Downing Street

July 29, 2022
Business

Boston Consulting in ‘nepotism’ row over work experience for children of top staff

July 29, 2022
Next Post
Gravitas: ‘Strange’ radio waves detected from the heart of the Milky Way

Gravitas: 'Strange' radio waves detected from the heart of the Milky Way

TimesNewsNetworks.com

Times News Networks is an online news portal that aims to provide the latest news about varies aspects from around the world. We promise to share only high quality content from the world's recent happenings . Feel free to get in touch with us!

What’s New Here!

  • Boss of UK accounting watchdog says EY split would bring benefits
  • Why Don’t Many Hotels Install Carbon Monoxide Alarms?
  • Pope says he’ll slow down or retire: ‘You can change a pope’

Trending Now

  • Boss of UK accounting watchdog says EY split would bring benefits
  • Why Don’t Many Hotels Install Carbon Monoxide Alarms?
  • Pope says he’ll slow down or retire: ‘You can change a pope’
  • Write for Us
  • Privacy Policy
  • Terms of Use
  • DMCA

Copyright ©️ All Rights Reserved | TimesNewsNetworks.com

No Result
View All Result
  • Home
  • World
    • Politics
    • U.S.
    • Opinion
  • Business
  • Energy
  • Health
  • Science
  • Tech
  • Sports
  • Food
  • Arts
  • Style
  • Books
  • Real Estate
  • Magazine
  • Travel
  • Video

Copyright ©️ All Rights Reserved | TimesNewsNetworks.com