BoE 'at risk of losing credibility'
Wednesday, 27 April 2011
A member of the Bank of England's (BoE's) Monetary Policy Committee (MPC) has warned that the institution's failure to raise interest rates has left it in danger of losing credibility, a view that may interest individuals in private banking jobs.
Speaking to an audience in Manchester, Andrew Sentance, who leaves the MPC next month, suggested that the BoE has failed to adequately tackle the threat of inflation.
"The MPC's credibility and commitment to the inflation target may already have been eroded by not adjusting policy settings soon enough," he stated.
Mr Sentance has been arguing for an increase in interest rates for the UK since the middle of last year, but has found himself at odds with the majority of the Committee who have favoured maintaining the record low rate, which has been at 0.5 per cent since March 2009.
However, in the BoE's latest monthly meeting, his calls for a rise were echoed by members Spencer Dale and Andrew Weale for the third month in a row.
