Thursday, November 30, 2006
Should the MPC meet less often?
Posted by David Smith at 09:00 AM
Category: Thoughts and responses

Interest rates don't change that often these days, and the Bank of England has a bias towards changing rates in inflation report months - February, May, August and November. Should it meet less often, say eight times a year instead of 12? That is Rachel Lomax's suggestion in a Western Mail interview, though it would require a change in legislation.

Comments

Should the MPVC meet less often?

Hi David,

Volatility in US dollars is bad news for central bankers around the world. Perhaps the question should have been should the MPC placate less often?
Too much money in the economy, from artificial growth may force the BoE hand. the options will be either saving the pound, meaning rates will rise or outright devaluation. Or as inflation policy is now so popular; hyperinflation or deflation. Which one is it to be?......mmmm I start to understand that these MPCmeetings cant be much fun.........perhaps they should just meet whenever its required!. Voila! back to placating the issue!!

Best wishes

Arik Schickendantz

Posted by: Arik Schickendantz at November 30, 2006 11:48 PM

Hi

My view, is that it is better to meet to often than not often enough. If there is an external shock, then it give the MPC a normal meeting, to discuss events. Without this, it cold mean an extra ordinary meeting is called, which may spook the markets.

Anyway, I presume she and the others would have a pay cut, if this occurs ;)

Posted by: Kingofnowhere at December 1, 2006 08:22 AM
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