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.