MPs question Miles' MPC job

QUESTIONS were raised yesterday over new Bank of England Monetary Policy Committee (MPC) policymaker David Miles&rsquo; existing position as non-executive director of the Financial Services Authority (FSA).<br /><br />The Treasury committee, which formally endorsed Miles as an external MPC member, said there could be a conflict between the two roles.<br /><br />The former Morgan Stanley chief UK economist is the first external MPC member to also hold a position at the FSA &ndash; there is an existing formal link between the two institutions at deputy governor level.<br /><br />Chairman of the committee, John McFall, said the Treasury committee recommended that both institutions should consider the potential conflicts and benefits which might arise from cross-membership beyond Deputy Governor level and report back to the committee before the next MPC meeting, due next week.<br /><br />Sub-chairman of the committee, Michael Fallon, said that while Miles was ideally suited for the job, his MPC membership would potentially come into question were he to remain a member of the FSA board.<br /><br />Miles also told the MPs the worst of the UK housing downturn was over saying &ldquo;we have seen most of overall aggregate house price falls&rdquo;. Miles wrote a respected government-commissioned report on the mortgage market in 2003 and 2004.