MILLENNIALS KEY TO BOOSTING TRUST IN BANK OF ENGLAND SAYS GOVERNOR MARK CARNEY
Mark Carney has called on the “spirit of the millennial” to help boost public trust in the Bank of England and counter misperceptions surrounding monetary policy.
The Governor used a speech at the Bank’s Court Room to stress the importance of increasing diversity across the central bank in order to raise public trust, improve adaptability, and effectively communicate key decisions.
“Of course, trust can be built through a track record, but it can also be grounded in familiarity. People trust individuals, places and things that they know.
“Reflecting the diversity of the people we serve can reduce misperceptions that we are experts making esoteric decisions in an ivory tower for the benefit of others,” he explained.
The Bank recently introduced diversity targets that aim to triple the proportion of women in senior roles to 35% by 2020, and Black, Asian and minority ethnic staff in those roles to 13% by 2020.
But Mr Carney also raised the profile of millennials, saying that the inclusion of a younger generation was particularly crucial to increasing “cognitive diversity” which is harder to target.
“This younger generation is interested in connecting with each other, collaborating across teams and exploring a variety of ideas to solve problems.
“That’s not just interesting, it’s necessary. The spirit of the millennial is better suited to the complex challenges that central bankers face in a risky and uncertain world,” he said.
He warned that “homogenous groups” who pay “insufficient attention” to minority views are at risk of “biases, groupthink and over optimism”.
Mr Carney’s speech comes just hours after the Bank announced that Kristin Forbes – one of two women on the interest rate-setting Monetary Policy Committee (MPC) – would be stepping down in June after completing her three-year term.
Simultaneously, the Bank announced that its current chief operating officer Charlotte Hogg will become Deputy Governor for Markets and Banking, replacing the outgoing Minouche Shafik.
A replacement for Ms Forbes has yet to be announced. The Governor went on to emphasise the importance of making sure that the Bank uses accessible language to reach a wider audience, including “both the City and the country, the the salon and the suburb”.
He said: “We need alternative perspectives to craft our messages so that they make sense and resonate with more people. The more people can recognise themselves in us, the more we can stand in their shoes and speak their language, the more likely the Bank is to be trusted.”