Bank of England to cut its policy meetings to 8 per year

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Bank of England to cut its policy meetings to 8 per year

The Bank of England (BoE) has launched “significant improvements” in its transparency, accountability and governance. Among these are reducing monetary policy meetings to eight a year, publishing the minutes of the meetings on the same day and to publish written transcripts of all meetings held for eight years.

In a statement, the Bank of England explained that the aim of these measures is to place the institution at the forefront of international best practice and improve their ability to fulfil its mission of promoting the welfare of British citizens while maintaining financial and monetary stability.

The improvements are based on the independent report by the former governor of the US Federal Reserve Kevin Warsh. After reviewing the procedures and practices of transparency of the MPC, he marked four main objectives: make sound policy decisions, communicate effectively, ensure accountability for their actions and hold an accurate history.

Following these recommendations, the Bank of England has decided to modify some of its practices, such as the frequency of its monetary policy meetings. He also published that from August 2015, the minutes of BoE monetary policy meetings – and in the corresponding months the inflation – report the same day to inform their decisions.

In this line, it will publish in March 2015 transcripts of monetary policy meetings with related materials, including the meetings of the last eight years. Other measures are to hold four joint meetings in 2016 between the MPC and Financial Policy.

On the other hand, the BoE has proposed to simplify the structure of its governance bodies and have a greater responsibility and commitment to strengthen the scope of current legislation and make their work as efficient as possible.

“The Bank has major responsibilities for monetary stability, financial stability and micro-prudential regulation. And these responsibilities imply the need for effective transparency, authentic accountability and robust governance,” said the Bank of England’s Mark Carney.

Therefore, he was delighted to be able to announce the “significant” number of changes on the way and explain its decisions on monetary policy and additional changes that will mean a big step in the governance of the institution.

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