Treasury select committee chair Andrew Tyrie has warned the Bank of England it must have an open selection process next time it appoints members to its monetary and financial policy committees.
Following a hearing earlier this week, the TSC has approved Andy Haldane moving from the FPC to the MPC and Spencer Dale from the FPC to the MPC.
The switch is part of a change to the way the two committees work together. Tyrie says this and the recent regulatory restructure provides “a measure of justification” for having arranging the move internally rather than having an open recruitment process.
Tyrie says: “MPC and FPC roles are usually filled through open competition. The Bank did not follow that practice in this case. The wider reorganisation of the Bank might provide a measure of justification in this occasion, but the Bank should return to its usual practice of open competition for such appointments in future.”
Giving evidence to the committee on Wednesday, both Dale and Haldane said while changes within the Bank mean arranging the switch internally made sense, it is important in future the roles are publically adviertised and contested.
The Fianancial Services Act gives the Bank extensive new powers including the prudential regulation of banks and insurers and, through the FPC, responsibility for monitoring and taking action against risks to financial stability.
Haldane has worked at the Bank since 1989 and spent the first ten years as an economist in the monetary policy division. Since 2009 he has been executive director for financial stability.
Dale joined the Bank in the same year as Haldane and between 1997 and 1999 worked as private secretary to then deputy governor for monetary policy Mervyn King. Between 2006 and 2008 he was a senior adviser to the board of governors of the Federal Reserve. After that he returned to the Bank as an executive director and chief economist for monetary analysis and statistics.