“If, as I think is probable, the Conservatives win the election and they do make this change they need to give a lot of attention on how to mitigate these risks in putting everything into the BOE,” Gieve said in a speech late yesterday at Keele University in England. “You face a risk that your monetary policy becomes too attuned to the interests and concerns of the financial sector it’s regulating.”
Bank of England
Conservative leader David Cameron has pledged to shift supervision powers from the Financial Services Authority to the central bank if he beats Prime Minister Gordon Brown and wins the election which is due by June. That would concentrate oversight of the finance industry at the bank as it also keeps independence in monetary policy granted by Brown in 1997.
Bloomberg