Recommendation 10

According to the evidence we received, there is perceived to be a lack of intellectual diversity in many central banks, including the Bank of England. Witnesses suggested that this contributed to insufficient challenge on the MPC in 2020 and 2021 which allowed a unanimity of view to prevail about the “transitory” nature of above-target inflation. While every member of the MPC must be committed to fulfilling the Committee’s objectives, it is imperative that its membership comprises people of different backgrounds and economic perspectives. The Bank must be pro-active in encouraging a diversity of views and a culture of challenge. This should be reflected in its hiring practices and its appointment procedures.