- BoE to end unofficial briefings with private companies
- In-depth examination of links between central banks and finance
- US Fed and the ECB were also in the spotlight
LONDON, October 13 (Hfrance.fr) - The Bank of England n 'will hold more informal briefings between policymakers and individual private sector companies, he told Hfrance.fr on Wednesday, as the review of the links between central banks and finance is developing.
This decision, a permanent step aimed at improving the transparency of information gathering operations on the BoE's markets, makesfollowing growing concern over similar practices in other central banks.
It represents a further step in lifting the veil that hangs over the sometimes secretive world of the central bank and a further break with the BoE's image of decades and centuries past, when meeting with private banks in smoky rooms was the norm and its conduct of opaque politics.
Last month, the European Central Bank faced calls to end its closed-door relationship with private companies after its chief economist allegedly learn more
The ECB partially contested the Financial Times report.
Meetings between members of the BoE 's monetary policy committee and private banks had been touted as a way for the BoE to gather intelligence on the economy and financial markets.
The comments of decision-makers should be limited to reiterating the BoE pub 's lic position, according to the rules of the institution.
The BoE also publishes the details of these meetings in the schedules of MPC members which are made available to the public after the meetings have been held.
But these events also sparked speculation and rumors among financial traders. Last week, some Twitter users spoke of an MPC member meeting with a large bank and its clients, which the BoE declined to comment.
During briefings with bank individuals on the outlook for pmonetary policy will cease, the BoE has regular contact with the banks in its role as regulator of the British financial system.
CONFLICTS OF INTEREST?
In the United States, Federal Reserve Chairman Jay Powell and other Fed officials regularly meet with bosses on Wall Street and in the United States. 'other financial market leaders, but they usually listen to sessions or discussions of non-political issues, not briefings.
The Fed's communications policy discourages policymakers from conducting private briefings which might even appear to impart special information.
Last month, two Fed officials were forced to sell their individual shares by the end of the month to remedy the emergence of conflicts of interest. find out more
Earlier this year, ECB chief economist Philip Lane had to suspend one-on-one meetings with investors immediately after the policy announcements, in part because of criticism from the public with regard to such commitments. But he has always met with groups of economists.
The BoE will still hold its briefings regular informal meetings with a group of private finance company economists following their quarterly Monetary Policy Report.
These meetings differ from meetings at behind closed doors with individual banks as dozens of participants from a wide range of institutions are in attendance. Reporting by Andy Bruce; Editing by William Schomberg, Toby Chopra and Alexander Smith
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