A senior Bank of England (BoE) official yesterday said it should resist pressure to combine its financial and monetary policy committees due to fears of it diminishing the importance of difficult-to-measure stability concerns.

Banking Supervision deputy governor Ben Broadbent argued in a speech delivered to a conference in Australia that combining the two committees would apply too much emphasis on monetary policy targets on inflation and growth.

Since the financial policy committee was established in 2010, the possibility of joining the two committees has been posed on more than one occasion, as the actions of the monetary policy committee have significant effects on financial stability, and vice versa.

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