The Bank of England will now only meet eight times a year to determine interest rate rises and discuss monetary policy, rather than carrying out the current monthly meetings.
Under plans announced in September, the Bank will drop the January, April, July and October meetings each year, with October’s this year the first to be dropped. The plans have now received Royal Assent.
“Following its previously announced intentions, the scheduled MPC meeting ending on 13 October will be the first to be dropped under the new arrangements. Similarly, the meetings provisionally planned for January, April, July and October 2017 would also be removed from the schedule,” says a statement from the BoE.
The change is part of recommendations made in Kevin Warsh’s review ‘Transparency and the Bank of England’s Monetary Policy Committee’.
In the report Warsh claimed that alterations in the policy stance “typically require persistent changes” in economic data and “rarely would a single four-week period be sufficient to change” the assessment of the economy.
The move brings the BoE in line with the US Federal Open Market Committee, which meets eight times a year or fewer, and the European Central Bank’s Governing Council, which meets eight times a year.