The Bank plans to cut the number of annual MPC meetings from 12 to eight, publish MPC minutes at the same time as rate decisions, and make historic meeting transcripts available – albeit with an eight-year lag.
The changes follow an independent review of the MPC’s transparency practices and procedures by former Federal Reserve Board governor Kevin Warsh.
In his report, Warsh recommended the Bank make reforms to its four key objectives: making sound policy decisions, communicating judgments effectively, ensuring accountability for its actions and creating a fair and accurate historical record.
In response, the MPC has announced a number of changes to its current practices.
From 2016, the committee will have scope to hold just eight meetings a year, down from the current 12 monthly meetings. It will also hold four joint meetings between the Monetary and Financial Policy Committees.
The Bank also plans to publish both the minutes of its policy meetings and the Inflation Report at the same time as its policy decisions, starting in August 2015.
The MPC will also publish written transcripts of monetary policy meetings, as well as related staff policy briefing materials, with an eight-year lag as of its meeting in March 2015.
Additionally, the Bank has proposed a simpler structure for its governing bodies and a clearer commitment to accountability.
This will include establishing the Bank’s Court as a unitary board, publishing the minutes of the Court meetings held between 1914 and 1987 and releasing the minutes of the Court during the crisis period of 2007-2009.
Governor Mark Carney said: “Today I am pleased to announce the most significant set of changes to how we present and explain our interest rate decisions since the MPC was formed in 1997.
“We have also proposed a number of additional changes that will mark a step change in the governance of this institution. These changes will enhance our transparency and make us more accountable to the British people.”
