28th November 2017.
BofE Urges Renewed Public Trust in Economics
The Bank of England must work harder to improve the public’s understanding of economics after seeing trust in the organisation fall following the financial crisis, a key official has warned.
Andy Haldane, the bank’s chief economist, has recently spoken out against the complexity of financial information, suggesting a renewed attention to simplification could lead to the public restoring their trust in British banking.
Haldane continued in his speech at the Nishkam High School in Birmingham, and insisted a better understanding of economic policy would help people make better everyday decisions while ensuring there is a “trusting and understanding” relationship between the public and the Bank of England.
The chief economist held up as an example the recent inflation report released by the Bank of England which shows the bank’s latest decision on UK interest rates and a forecast for the cost of living. Haldane criticised the language within the report as being too complex, stating it could only be understood by about 5 per cent of the UK population.
However, he also reported that the bank is broadening its reach by simplifying its message.
The Bank Underground blog, which is written by the Bank of England, is less complex than the inflation report and is accessible to about 20 per cent of the adult population, according to Mr Haldane.
Haldane urged the importance of a good relationship between the banks and the public, particularly in these uncertain and turbulent times.
“It matters for people when making good decisions. It matters for the economy when following a good course. It matters for policymakers when setting good policy”, he added.
The Credit Protection Association supports any move to make information more accessible for the public. Financial information can be complex but everyone should have the opportunity to understand what is going on around them. At CPA we make an effort to make our blogs and new articles accurate, informative and universally accessible to all people, from credit managers to shop owners.
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