BoE Timing Could Reduce MPC to Seven Members

The Bank of England’s rate-setting team could be reduced to seven members for the first time in nearly 11 years as election “purdah” rules will delay appointments until at least next month.

The Bank’s monetary policy committee (MPC) has eight members from the usual nine after deputy governor Charlotte Hogg was forced to resign in March for failing to declare her brother works for Barclays.

External MPC member Kristin Forbes is also due to step down in June, while chief economist Andrew Haldane’s term ends next week.

The Treasury has put recruiting on hold as it is unable to make appointments during so-called purdah rules on government announcements during the election period.

While it is expected that Haldane will continue in his post until his re-appointment can be confirmed, the delay to replacements for Hogg and Forbes could result in the fewest number of individuals voting on rates since 2006.

The MPC has not been down to seven members since July and August 2006 after the unexpected loss of David Walton, who voted in June 2006 and died later that month. It’s next meeting to discuss rates and release quarterly inflation report is on 3 August.

via The Guardian

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