UK government plans a Bill to implement former Fed governor's review of BOE practices
One of the notes that has come out alongside the Queens speech is a Bill that could allow the BOE to cut their MPC meeting frequency to 8 meetings a year
Former Fed governor Kevin Warsh compiled a report that was published last December and now the UK government are looking to implement those findings. The MPC's proposed timetable for 2016 would allow for the change to 8 meetings instead of 12
The BOE are already making changes to how they structure MPC meetings and are today testing a new format which will see the minutes and votes announced with the MPC rate decisions. The quarterly inflation reports will also be published on a rate meeting day
As a trader I'd prefer not to have the number of meetings reduced as it can take volatility out of the market. Even though MPC meetings have been a trading dead zone for the last couple of years, when rates start to get back to normal that should bring us higher volatility around meetings
What do you reckon? Are you in favour of reduced central bank meetings generally?
