SIR MERVYN King, Mark Carney and any future governors of the Bank of England will be forced to seek the views of deputies in making decisions, though they will retain the final say, the Bank said yesterday.
To ease worries that the Bank has a dictatorial culture, in which its staff are scared of bringing concerns to their bosses, the governor will be required to seek the counsel of his deputies and all dissenting views must be recorded. The move comes in response to the Winters Review which examined the Bank’s governance.
Meanwhile, in response to the Stockton Review of the Bank’s forecasting ability – which found it had failed to learn from past errors, and that it gave too little information on the assumptions it was working on – the Bank said it would expose forecasts to increased challenges. “An enhanced forecast evaluation process will be developed, linked to a retrospective evaluation of the central judgements shaping the forecast,” the Bank said.
The Bank also said it would incorporate the financial sector more thoroughly in its models, and give more detail on the precise mean and median forecasts it was making.