Recommendation 13

Members of the Bank’s policy committees make decisions which have an immense impact on the UK economy. However, being led by HM Treasury, the process for appointing members to the Monetary Policy Committee has contributed to perceptions of both bias and a lack of diversity of thought. It is notable that three of the four current Deputy Governors have a Treasury background. While they are undoubtedly able, this does not strengthen the perception of independence. HM Treasury and the Bank’s Court of Directors should commission an independent review to address this: that review should look at how other public appointments are made, such as to the judiciary; consider best practice in other central banks; and propose measures to ensure the appointments process is transparent.