George Osborne has said the Bank of England's new Financial Policy Committee must provide "consistent messages" so it does not risk jeopardising the economic recovery.
In a letter to BoE governor Sir Mervyn King, the Chancellor acknowledged the FPC's main role of helping maintain financial stability, but also drew attention to its secondary responsibility of supporting government economic policy. Osborne said he recognised the tension between minimising risk in the financial system and supporting the government's aim to boost economic growth. But he stressed it was "particularly important" the committee gives "due weight to the impact of its actions on the near-term economic recovery". The letter, which outlines the FPC's remit, said the committe...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
