MPs warn Bank of England about 'groupthink' after deputy governor appointment


The Bank of England has been warned by MPs not to fall victim to "groupthink" following the appointment of its chief operating officer to the position of deputy governor.

The Commons Treasury Committee said it was satisfied Charlotte Hogg had the "professional competence and personal independence" to take up the post with responsibility for markets and banking.

But after a hearing on Tuesday when Ms Hogg was questioned about her adherence to orthodox Bank thinking, the MPs expressed concern there should a greater range of views in the Bank's senior ranks.

"We are concerned about the need to develop diversity of view at the Bank and the need to maintain vigilance to counteract groupthink," the committee said.

The committee also warned Ms Hogg would have to take action to address potential "conflicts of interest" after she was questioned about the fact her brother was a senior executive at Barclays, which she will have a responsibility for regulating.

"Steps will need to be taken to ensure she puts in place arrangements to address conflicts of interest or the appearance of such conflicts," it said.

During the hearing, she said it was "a possibility" she could recuse herself from discussions about Barclays during meetings of the Bank's prudential regulation committee.