MPs question Miles’ MPC job
QUESTIONS were raised yesterday over new Bank of England Monetary Policy Committee (MPC) policymaker David Miles’ existing position as non-executive director of the Financial Services Authority (FSA).
The Treasury committee, which formally endorsed Miles as an external MPC member, said there could be a conflict between the two roles.
The former Morgan Stanley chief UK economist is the first external MPC member to also hold a position at the FSA – there is an existing formal link between the two institutions at deputy governor level.
Chairman of the committee, John McFall, said the Treasury committee recommended that both institutions should consider the potential conflicts and benefits which might arise from cross-membership beyond Deputy Governor level and report back to the committee before the next MPC meeting, due next week.
Sub-chairman of the committee, Michael Fallon, said that while Miles was ideally suited for the job, his MPC membership would potentially come into question were he to remain a member of the FSA board.
Miles also told the MPs the worst of the UK housing downturn was over saying “we have seen most of overall aggregate house price falls”. Miles wrote a respected government-commissioned report on the mortgage market in 2003 and 2004.