Keep Bank of England panels apart or risk errors – Broadbent

Keep Bank of England panels apart or risk errors – Broadbent

© Reuters.  Keep Bank of England panels apart or risk errors - Broadbent© Reuters. Keep Bank of England panels apart or risk errors – Broadbent

LONDON, April 12 (Reuters) – Calls for the Bank of England to create a new super-committee to oversee both the economy and the financial system would overload policymakers and raise the risk of the kind of mistakes seen before the financial crisis, a top official at the BoE said.

Deputy Governor Ben Broadbent said merging the separate monetary and financial policy committees – as sometimes proposed by politicians – would make decision-making too complicated, possibly leading to complex issues going unchecked.

“Perhaps we collectively fell foul of this trap, in some ways, ahead of the crisis,” Broadbent said in a speech he was due to give via video-link to a conference at Australia’s central bank on Thursday.

“The risk of a rare event is not an easy thing to judge and, having gone so long without a serious problem in the financial system, our attention was distracted by the more easily monitored task of stabilising the economic cycle.”

Britain’s government gave the BoE greater powers over the country’s huge financial services industry after the banking sector was hammered by the 2007-08 global financial crisis, pushing the economy into a deep recession.

Some lawmakers in Britain’s parliament, who monitor the BoE’s work, have suggested merging the monetary and financial policy committees because of the way their roles can overlap. (Writing by William Schomberg Editing by Hugh Lawson)

Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.