Economy is give and take for Bank agent

Bank of England agent John Whitley is in the island until Monday. (Picture by Steve Sarre, 0560007)

GUERNSEY’S business community is playing a role in forming the strategies of the UK’s Monetary Policy Committee.

Bank of England agent John Whitley is in the island getting feedback from local businesses about economic conditions. He will report back to the MPC, which determines UK interest rates.

‘The idea is to ensure it gets very direct and prompt information on what happening in the economy,’ said Mr Whitley. ‘I’ve come to Guernsey because it has strong links with the UK so it’s important to get feedback from businesses about what the economic conditions are like for companies here.

‘Because you adopt the Bank of England interest rates, we think it’s important to come here and explain what’s driving them.’

There are 11 other Bank of England agents, each with responsibility for the different regions of the British Isles.

Mr Whitley is in Guernsey until Monday and will complete a programme of visits to island businesses.

He will undertake four appointments with individual companies and also have lunch with a group of another dozen or so.

‘All the information that I gather will go into my next report to the MPC.

‘The committee really takes an interest in Guernsey because it likes to know what’s happening with its major trading partners.’

This is Mr Whitley’s third visit and this time he gave a presentation to business leaders explaining the MPC’s view on what is happening in the UK economy and the issues with which it is concerned.

‘At the moment we are seeing a pick-up of inflation above the target that will have an influence on our thinking about the future interest rates.

‘Whether they will cut or increase the rate is for the Bank of England to decide, though, not me.’