The reforms will change the way the MPC discusses and sets interest rates, aims to improve transparency, and is designed to stop speculation over the reasonings behind the MPC's decisions.
In December, the Bank published an independent report reviewing the Monetary Policy Committee’s transparency practices and procedures.
Federal Reserve Board Governor Kevin Warsh recommended that the Bank adopt reforms in service to what he called the “Big 4” objectives: making sound policy decisions; communicating judgments effectively; ensuring accountability for its actions; and creating a fair and accurate historical record.
The MPC accepted the recommendations, and announced that they would make fewer interest rate decisions and will release the minutes of policymakers' meetings instantly instead of waiting for two weeks.
They also announced plans to set rates eight times a year instead of monthly.
The Bank also plan to introduce a series of significant transparency, accountability and governance enhancements designed to improve practice and increase monetary and financial stability.
Alongside these measures, the Bank also proposed a simpler structure for its governing bodies and a clearer commitment to accountability.
