NEW STATESMAN: Are the Bank of England's Inflation Experts Fit for Purpose

Press/Media: Expert comment

Period5 May 2022

Media contributions

1

Media contributions

  • TitleAre the Bank of England's Inflation Experts Fit for Purpose
    Media name/outletNew Statesman
    Media typeWeb
    Country/TerritoryUnited Kingdom
    Date5/05/22
    DescriptionA glance at the MPC’s membership reveals another issue: although there are usually one or two women on it, the committee is generally populated by men of a certain age and background. At the moment, it’s seven men and two women; there are no people of colour. A lack of diversity means “you’re unlikely to get the kind of policy grenade thrown into the table that makes you think differently,” says Cary Cooper, a professor of organisational psychology at the Manchester Business School.

    Sentance has pointed out that many MPC members also have very similar CVs: “The fact that the majority of the present MPC are ex-Treasury officials or have Treasury connections undermines the independence of the Bank,” he told the Times. “The pipeline is the important bit,” agrees Cooper. He suggests now is the time for the Bank of England to expand its hiring horizons. “[If you hire] similar people who have been trained the same way, you’re not going to get diverse, creative thinking.” More diverse backgrounds may also help the bank to avoid gaffes such as the governor Andrew Bailey’s comment earlier this year that companies should “show restraint” when giving pay rises.
    URLhttps://www.newstatesman.com/economy/2022/05/are-the-bank-of-englands-inflation-experts-fit-for-purpose
    PersonsCary Cooper

Keywords

  • Bank of England
  • diversity
  • business