Lib Dems urge reform in MPC appointments

The Liberal Democrat Party has called on the government to go further in its reforms of Bank of England’s Monetary Policy Committee appointments.

This follows Gordon Brown’s announcement that new positions will be publicly advertised.

Vince Cable, Liberal Democrat shadow chancellor, says: “The Liberal Democrats advocated the policy of setting up an independent MPC to set interest rates long before the government.

“In general the policy has been very successful.

“However, we have consistently argued since 2002 that further steps should be taken to strengthen the independence of members and remove any possible suggestion of political favouritism.

“Future appointments should be made on a longer, single term, basis with scrutiny of the decision by the Treasury Select Committee before the appointment is made.”