21 February 2008, 17:56  Andrew Sentance has rejected the suggestion that rate setters should meet less often

Monetary Policy Committee member Andrew Sentance has rejected the suggestion that rate setters should meet less often -- going against a recent recommendation from the Treasury Select Committee, which received official support from the Bank of England. Sentance, an external member of the nine-member panel, told the Devon and Cornwall Business Council that meeting every month made it easier for the committee to update its assessment of the economy based on the latest data. "In past, less turbulent, times there have been suggestions we should meet less frequently - like the Fed, which meets eight times a year," he said. "In my view the current situation highlights the benefit of monthly cycle of meetings," he added, noting it enabled the MPC to update its assessment as new data came in. Last year, the Treasury Select Committee recommended the 1998 Bank of England act be amended to remove the requirement for a monthly meeting, specifying instead there should be at least eight meetings spread over the course of the year. Earlier this month, the BoE gave backing to this suggestion in its official response to the report, suggesting Sentance is at odds with the central bank's official view. "The MPC would welcome scope for greater flexibility in regard to the timing of its meetings," the BoE said.

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