1 Introduction |
1. In our First Report of Session 2005-06, we
indicated our intention to continue with the practice of our predecessors
of holding hearings and issuing reports on appointments to the
Monetary Policy Committee (MPC) of the Bank of England.
This practice enhances the transparency of the appointment process
and increases the level of information available to the public
and to Parliament about the functioning of the MPC.
2. We have resolved to restrict questioning to issues
of the appointee's personal independence and professional competence.
We have also decided to send a preliminary questionnaire to each
appointee prior to the hearing requesting information about the
appointee's career and views on relevant economic issues.
3. In this report, we have considered the suitability
of Sir John Gieve for the post of Deputy Governor for Financial
Stability at the Bank of England and for his role as member of
the MPC. We express full confidence in the work of the MPC, whilst
noting that both Deputy Governors of the Bank of England were
formerly civil servants. The appointment process for senior posts
at the Bank of England and for positions on the MPC and the composition
of the MPC are issues to which we will return at the appropriate
4. We took evidence from Sir John on 26 January 2006.
This evidence, for which we are most grateful, is published with
this Report, together with his answers to our questionnaire.
1 Treasury Committee, First Report of Session 2005-06,
The Monetary Policy Committee of the Bank of England: appointment
hearings, HC 525-I Back
Treasury Committee, Third Report of Session 1997-98, Confirmation
Hearings, HC 571 Back