Uniting Two Policy Committees Aren’t A Good Idea, BoE States

Forex News

Bank of England stated that recent requests to form a new super-committee to monitor the economy and the financial system would seriously complicate policymakers’ job and create a threat of another financial crisis. Ben Broadbent (Deputy Governor) told that if separate monetary and financial policy committees are to be united, the process of making decision would become extremely difficult. The Deputy Governor noted: "Perhaps we collectively fell foul of this trap, in some ways, ahead of the crisis"; "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 stabilizing the economic cycle."