Background meetings with representatives of commercial banks are not uncommon in the everyday work of central banks.
(Photo: dpa)
London The Bank of England does not want to hold background discussions with individual commercial banks in the future. The news agency Reuters learned on Wednesday from the British central bank. With this step, which should cause a stir in the industry, the monetary authorities want to ensure more transparency. Such practices are not uncommon among central banks, although concerns about them have recently increased.
In September the “Financial Times” reported on a conversation between ECB chief economist Philip Lane and German economists about medium-term inflation developments. The Irishman is said to have disclosed internal considerations that the ECB should achieve its inflation target of two percent by 2025. The ECB had partially rejected the report. The issue is explosive because the ECB has not yet made its medium-term expectations of inflation developments public.
According to its own statements, the Bank of England (BoE) held background meetings with representatives of commercial banks to gain better insights into the economy and the financial markets.
However, the central bankers are only allowed to speak about the views of the central bank that are already known to the public. The content of these discussions will be published afterwards. But such events also provide space for speculation and rumor among traders and it is debated on social media.
Top jobs of the day
Find the best jobs now and
be notified by email.
More: Banking industry urges rethinking of crisis monetary policy