Bank holds rates as trial ends
THE BANK of England has finished an internal trial of new procedures and from now on will publish details of monetary policy decisions on the same day they are made.
In a much-expected move, the nine-strong monetary policy committee held rates at 0.5 per cent yesterday. They have been unchanged at their record low since March 2009.
But minutes of the meeting will not be published for another two weeks.
The minutes reveal the thinking behind the policy makers’ decision, often revealing which economic indicators they are focusing on. This gives people a better idea of when and how the Bank will change interest rates in the future.
Starting in August, the Bank will do away with the two week wait for minutes and will publish them on the same day. It comes as a part of package of proposals to increase transparency.
The Bank has also started transcribing meetings, but these will be published with a delay of eight years. It has published historical minutes of the Bank’s Court, which operates like a board of directors, and historical minutes of other meetings relevant to rate setting.