Key facts
- Bank of England MPC members Megan Greene and Alan Taylor have voiced concerns about recent communication changes.
- The BoE replaced its single central economic forecast with three scenarios in April.
- Individual MPC members' explanations for their votes are now included in policy minutes.
- Greene believes these changes risk discouraging collective discussion and consensus-building.
- Taylor suggested that scenario-heavy communication increases the importance of a central forecast.
The Bank of England's recent changes to its communication strategy, including the suspension of a single central economic forecast in favour of multiple scenarios and the inclusion of individual policymakers' explanations for their votes, are raising concerns among Monetary Policy Committee (MPC) members. MPC member Megan Greene stated that this shift may reduce the inclination for members to engage in thorough discussions and persuade one another, potentially hindering the formation of a collective viewpoint. Alan Taylor, another external MPC member, expressed similar worries, arguing that the increased reliance on scenario-heavy communication actually heightens the importance of a robust central forecast. These changes were partly influenced by recommendations from former Federal Reserve Chair Ben Bernanke. Greene and Taylor represent different policy stances within the MPC, with Greene having voted for a rate hike this month while Taylor voted to hold rates steady. Both have also presented their own scenarios that they believe better capture economic risks.