Is the Bank and its policy committees suffering from groupthink?
On Tuesday 23 May, the Economic Affairs Committee will hold its next oral evidence session for its inquiry on the Bank of England: how is independence working?
At 3pm, the Committee will hear from:
- Howard Davies, Chairman of the Natwest Group
- Roger Bootle, Chairman of Capital Economics
Topics the committee is likely to cover in this session:
- The possibility of the Bank and its policy committees suffering from groupthink;
- Discussing whether the Bank’s secondary objectives risks the Bank being politicised and/ or overstretched;
- Assessing the tension between the objectives of financial stability and price stability;
- Analysing the relationship between micro and macroprudential supervision; and
- Assessing the relationship between fiscal and monetary policy.
Meeting details
The committee’s work can be followed on its website and via Twitter.
2023 marks the 25th anniversary of the Bank of England Act 1998. This Act gave the Bank of England its independence and reformed the structure, responsibilities and functions of the Bank.
The Economic Affairs Committee is launching an inquiry to examine how operational independence is working. It will focus on the Bank’s role and remit; whether the governance structures of the Bank are appropriate; and how the Bank is being held accountable for its actions.
It will not look at individual policy decisions that the Bank has taken.