Four Monetary Policy Committee members wrote to the outgoing Bank of England governor after finding out he and other aides had privately been designing the Funding for Lending Scheme, Bloomberg reported.
The letter, written before the plan was announced in June, argued that failing to inform them undermined the committee’s legitimate control over monetary policy and their ability to gauge and manage the economic outlook, two unnamed sources told the financial news agency.
When asked for a comment, a Bank of England spokesman referred to a remark by Broadbent to lawmakers on June 26, in which he said that the externals were first informed at a meeting earlier that month.
“This was a policy, as I understand it, in its infancy at best, if not yet born at all,” Broadbent said. “So there was little to be done, except to inform the committee that there were discussions. There was nothing else to be discussed or said of it.”
