(MENAFN- AFP) The Bank of England on Thursday said it would change the way it conducts meetings to decide on the level of British interest rates, in the interest of more transparency.
A change to policy meetings being held every six weeks, rather than once a month, mirrors moves taken by the US Federal Reserve and European Central Bank.
The Bank of England has decided also to publish minutes of its meetings alongside the rate decision, rather than two weeks later.
"Today I am pleased to announce the most significant set of changes to how we present and explain our interest rate decisions since the Monetary Policy Committee (MPC) was formed in 1997," Bank of England governor Mark Carney said in a statement.
"These changes will enhance our transparency and make us more accountable to the British people,'' he added.
Under the changes the Bank of England (BoE) will cut the number of interest-rate meetings to eight from 12 in a single year, starting in 2016.
The change regarding publication of minutes will begin in August, 2015.
Thursday's announcements follow recommendations made in an independent report by former US Federal Reserve official Kevin Warsh.
British finance minister George Osborne welcomed the shake-up, saying: "This is an important step in further enhancing the effectiveness of MPC communication and its transparency."
Warsh said monthly meetings were "inconsistent with best practice".
He added: "There is a strong case for reducing the number of meetings from 12 to eight. Rarely would a single four-week period be optimal to revise an economic assessment."
Howard Archer, chief UK and European economist at consultants IHS Global Insight, said the change regarding publication of minutes "should allow analysts and the markets to make more informed views of the Bank of England's action and where policy is likely headed".
He added: "This should help to limit the risk of potentially damaging market swings that can occur."
At its most recent meeting last week, the BoE left its key interest rate at a record low 0.50 percent, where it has stood for almost six years.
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