LONDON (AFX) - The Treasury Select Committee says it expects to look into how appointments are made to the Bank of England's rate-setting Monetary Policy Committee some time next year.
In approving the appointments of Tim Besley and Andrew Sentance, the group of cross party MPs did not comment on the overall composition of the MPC but did say it 'may return to these topics at an appropriate time, which we expect to be in the course of 2007'.
The appointment procedure has come under widespread criticism this year, following the resignation of Richard Lambert in March and the death of David Walton in June. For two meetings, the MPC was down to seven members for the first time since the body was set up in 1997. Under the legislation that set up the MPC, the rate-setting body cannot operate without at least six members.
Chancellor of the Exchequer Gordon Brown took longer than anticipated to announce their replacements and Besley only joined the committee in September followed a month later by Sentance.
A number of Bank watchers are urging more transparency in the appointments procedure. The Conservative Party, the official opposition, has indicated that it will hand over appointments to an independent body. pan.pylas@afxnews.com pp/nes COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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