Senior BoE figure warns against heavy-handed regulation

clock

A heavy-handed response to regulating the financial services sector could lead to unintended consequences, according to Monetary Policy Committee (MPC) member, Andrew Sentence.

Speaking at a conference in London, he also claimed the boom that led to the current bust could not have been detected by the traditional measures of inflation used by the Bank of England. Sentence says monetary policymakers need to develop better instruments to maintain financial stability and avoid booms in the finance system. He says monetary policymakers and regulators need to work together to ensure asset bubbles are not created by distortions in financial markets. "However, there is also a danger of unintended consequences from heavy-handed regulatory interventions in the bankin...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

UK inflation drops to 2.6% in March amid warnings of further price rises

UK inflation drops to 2.6% in March amid warnings of further price rises

Down two percentage points

Sorin Dojan
clock 16 April 2025 • 2 min read
Rewriting the rules of engagement: Innovating for the future of wealth and financial advice

Rewriting the rules of engagement: Innovating for the future of wealth and financial advice

‘Hyper-personalisation and fintech disruptors are reshaping financial advice’

Sneha Shah
clock 15 April 2025 • 3 min read
News editor's view: A week of acquisitions and consolidation

News editor's view: A week of acquisitions and consolidation

The news editor's Friday Night Takeaway from 11 April

Sahar Nazir
clock 14 April 2025 • 3 min read