BoE committee 'should be more independent'

28 December 2011

The operations performed by a Bank of England (BoE) committee need to become more independent, it has been noted.

Think-tank Policy Exchange has recommended the alterations to the Financial Policy Committee (FPC) after identifying that the body must serve as an early warning alarm for any financial problems that may be on the horizon, the Press Association reports.

According to Policy Exchange's report - entitled Financial Policy, Monetary Policy and Macro-prudential Regulation - most of the committee's members should be externally appointed, while also having significant experience in the financial markets.

Co-author of the report Mark Darrell-Brown said of the FPC: "It should act as a channel of communication between the Bank and the markets and challenge current conventional wisdom."

The industry figure added it is crucial the macro-prudential regulator - which held its first meeting in June 2011 - does not adopt a 'group think' way of operating and rather serves to strengthen the expert panel through external appointments.

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