BoE could be too powerful, warns Tyrie

first_img BoE could be too powerful, warns Tyrie Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoNoteabley25 Funny Notes Written By StrangersNoteableyUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBrake For ItThe Most Worthless Cars Ever MadeBrake For ItUndoBetterBe20 Stunning Female AthletesBetterBeUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comUndo More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org Show Comments ▼ Share whatsappcenter_img KCS-content THE government’s decision to give sweeping new powers to the Bank of England (BoE) could create an “overmighty” institution with conflicting monetary and financial stability aims, according to the head of an influential parliamentary committee.Andrew Tyrie, who became the Treasury Select Committee’s first elected chairman in June, said the previous regulatory structure – which carved up responsibility between the Treasury, the central bank and the Financial Services Authority – had been flawed.But the Conservative lawmaker said there were also risks with rushing head-long into a new framework, especially one that handed so much power to one institution.Under the government’s proposals, the governor of the Bank of England will head both the Monetary Policy Committee (MPC), charged with setting interest rates, and the Financial Policy Committee (FPC), charged with looking at broader issues that could threaten financial stability.“There’s always the possibility that there will come a time when the FPC will want to loosen policy while the MPC is wanting to tighten it, or vice versa,” Tyrie told Reuters.The government intends the transition to the new regulatory framework to be completed in 2012 and is currently consulting on the details.“There is a risk we could create an overmighty BoE, a sort of super-quango,” he said echoing fears that the rushed overhaul will create problems.One issue Tyrie feels needs more elucidation is the role the chancellor will play in any future financial crisis.The draft framework suggests the chancellor would have ultimate responsibility when taxpayers’ money was at risk but Tyrie said he was not fully satisfied with how this would work in practice. whatsapp Thursday 16 September 2010 8:49 pm Tags: NULLlast_img