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Economics Affairs Committee calls for BoE change

ended 27. November 2023

The Economics Affairs Committee of the House of Lords has published a report, 'Making an independent Bank of England work better'. The report concludes that operational independence of the Bank of England should be preserved, but reforms are vital to improve its performance; strengthen its accountability to Parliament; and ensure it focuses on its key objectives of tackling inflation and maintaining financial stability. You can scan the key findings >> here <<. Any thoughts, send them across ASAP. Tight deadline as this story broke overnight.

4 responses from the Newspage community

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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Not just has Bailey done a woeful job, but he was the wrong appointment to the position. Given the importance the bank played before his coronation, other candidates should have been seriously considered. The Bank acted too late on inflation, and as a result had to go too far too quickly. It’s also too early to really understand the consequences of such steep rate hikes, but we will see significant repossessions and homelessness. Bailey has caused a winter of discontent for so many.
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Craig Fish
Director at Lodestone Mortgages
The current Monetary Policy Committee is way beyond its sell by date, and whilst it is refreshing to see a governor who doesn't feel the need to keep the media sweet, sadly I feel that he also needs to be changed. The mess that the UK currently finds itself in could have been averted by more prompt action at the outset. It's been a classic case of too little too late. We need a refresh from top to bottom, and the current crowd replacing with those that have real-life experience and are more diverse in age and background.
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Ken James
Director at Contractor Mortgage Services
More oversight seems inevitable, as the current members of the Monetary Policy Commitee do not have the capacity to rise to the challenges the markets and economy set. We need to have a more diverse group who are not afraid to be outspoken and to stand when others sit. They were slow out of the gates when it came to tackling inflation and the woes of the economy. The decision to increase rates should have started sooner, allowing the markets to adjust. I feel they panicked and went into overdrive. More oversight and control would help give them more accountability and, fingers crossed, a more proactive approach to managing their remit.
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Gary Bush
Financial Adviser at MortgageShop.com
I think the Bank of England needs independent oversight to have the authority to nudge them into action at times when they appear to be failing/or too slow to act. From our side we have been screaming (see our Twitter feed), since the Brexit vote result, for some slow and steady stabilising increases in the base rate to allow for some adjustments to be made. To have gone into the Brexit storm that ensued and taken no proactive action then left us with little leverage when the subsequent Covid storm raised its head. With the cost of living crisis, energy price rises, and Ukraine war coming in close order have created the impression of weakness and lack of proactive action from the BOE, it could have been so different.