Treasury select committee chairman Andrew Tyrie has written to the Bank of England to demand a review of its code of conduct for Monetary Policy Committee members.
In a letter to Bank governor Mark Carney last week, Tyrie says the appointment of Gertjan Vlieghe to the committee suggests the need for an overhaul.
Vlieghe is a former partner and senior economist at Brevan Howard Asset Management and joined the MPC in late July. However, it later emerged that he would retain a share in the fund management group’s future earnings, raising questions about a possible conflict of interest with his role helping to set the Bank’s base rate.
Vlieghe later reached a deal to buy him out of his stake with Brevan Howard.
In the letter to Carney, Tyrie writes: “It is essential that those appointed to the MPC have no conflicts of interest, nor perception of them.
“A well-designed code of conduct, sensibly applied, should be capable of achieving this without diminishing the quality of applicants.”
A Bank spokeswoman confirmed that it had received Tyrie’s letter and would respond but declined to comment further.