UK Conservatives to give more oversight to BOE

“If, as I think is probable, the Conservatives win the election and they do make this change they need to give a lot of attention on how to mitigate these risks in putting everything into the BOE,” Gieve said in a speech late yesterday at Keele University in England. “You face a risk that your monetary policy becomes too attuned to the interests and concerns of the financial sector it’s regulating.”

[mserve id=”Central_Bank_BOE.jpeg” align=”left” width=”400″ caption=”Bank of England” alt=”Central Bank of England BOE” title=”Bank of England”]

Conservative leader David Cameron has pledged to shift supervision powers from the Financial Services Authority to the central bank if he beats Prime Minister Gordon Brown and wins the election which is due by June. That would concentrate oversight of the finance industry at the bank as it also keeps independence in monetary policy granted by Brown in 1997.

Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza