View more on these topics

Tyrie demands MPC code of conduct overhaul

Andrew Tyrie Tory conf 2013.jpg

Treasury select committee chairman Andrew Tyrie has written to the Bank of England to demand a review of its code of conduct for monetary policy committee members.

In a letter to Bank governor Mark Carney today, Tyrie says the appointment of Gertjan Vlieghe to the committee suggested the need for an overhaul.

Vlieghe was appointed to the committee in late July, as a former partner and senior economist at fund management group Brevan Howard Asset Management.

However, it later emerged that he would retain a share in its future earnings, raising questions about a possible conflict of interest with Vlieghe’s role helping to set the Bank’s base rate.

Vlieghe later reached a deal to buy him out of his stake with Brevan Howard.

In the letter, Tyrie writes: “It is essential that those appointed to the MPC have no conflicts of interest, nor perception of them.

“A well designed code of conduct, sensibly applied, should be capable of achieving this without diminishing the quality of applicants.”

A Bank spokeswoman confirmed that it had received Tyrie’s letter and that it would be responding, but declined to comment further.

Recommended

Bank-of-England-Building-BoE-Bus-700x450.jpg
2

MPC member warns rate rise delay risks ‘distortions’

The Bank of England risks creating “distortions” in the UK economy if the record-low base rate of 0.5 per cent is maintained, a Monetary Policy Committee member warns. Writing in the Daily Telegraph today, MPC member Kristin Forbes warns policymakers not to become complacent despite positive indications on growth and wages in recent months. GDP […]

George-Osborne-in-Television-Studio-700.jpg

Osborne reveals new MPC member

Chancellor George Osborne has announced senior economist at Brevan Howard Asset Management Gertjan Vlieghe has been appointed to the Monetary Policy Committee. Vlieghe will replace David Miles as external MPC member, with Miles standing down from the nine-strong committee at the end of August. Osborne says: “Monetary policy plays a critical role in our long-term […]

BoE

TSC approves former White House economist as new MPC member

The Treasury select committee has approved the appointment of a former economic adviser to George W. Bush to the Monetary Policy Committee. Kristen Forbes has worked at the MIT-Sloane School of Management since 1998 and is currently a professor of management and global economics. She is a former banker with Morgan Stanley, World Bank researcher […]

Mark-Carney-close-up-focused-700.jpg
4

Will shock UK inflation rise push Carney to increase base rate?

UK inflation “defied expectations” in the year to July by rising from 0 per cent to 0.1 per cent, fuelling speculation of an interest rate increase in early 2016. Data published by the Office for National Statistics this morning confirms prices increased by 0.1 per cent in the 12 months to July. The largest upward […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment