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LIVE: Bank of England Governor Carney questioned by MPs
Bank of England governor Mark Carney has begun giving evidence to MPs, when he will be quizzed over claims that some of the bank's officials knew about alleged foreign exchange rate fixing.
His appearance before the Treasury Select Committee comes a week after it emerged that some officials were aware of rigging attempts as early as 2006.
The bank said there was no evidence its staff had colluded to rig the market.
But one member of staff has been suspended over compliance concerns.
Mr Carney is making a scheduled appearance before the committee to discuss the bank's latest Inflation Report and forward guidance policy on interest rates.
He said interest rates were likely to rise between 2% and 2.5% over the next three years.
And Mr Carney reiterated that the increase in interest rates would be "gradual and limited".
Amid the questioning, it emerged that the bank does not keep recordings of the Monetary Policy Committee's (MPC) monthly meetings where they discuss and vote on interest rates.
MPC member Paul Fisher said that recording the discussion may inhibit people expressing their options, and said it was "very hard to physically transcribe the tapes in a way that made sense".
'Extreme naivety?'The committee will later question bank officials, including Mr Carney, about the foreign exchange (forex) investigation.
Committee member Andrea Leadsom told the BBC earlier that Mr Carney would be closely questioned about whether the bank "did nothing" about suspicions it may have had about forex rigging stretching back to 2006 or 2007.
"It looks to me that the bank could be accused either of complacency or extreme naivety," the Conservative MP for South Northamptonshire said.
How much the bank knew raises the issue of oversight of the Bank of England itself, Ms Leadsom added.
"What we need to know is that they themselves are sufficiently governed," she said.
He will also be questioned about the abandonment of his flagship "forward guidance" policy on interest rates, as well as Scottish independence.
End QuoteAny day now its so-called oversight committee will confirm that the allegations of the Bank ignoring signs of market corruption will be independently investigated and evaluated by a senior external lawyer"
The minutes of meetings from 2006 were published last Wednesday following a Freedom of Information request.
They show that a senior member of the Bank of England's staff was told of "attempts to move the market" at a meeting with senior foreign exchange dealers from some of the world's largest banks.
Traders are alleged to have communicated with each other to agree the rate of exchange for foreign currency deals.
It is thought some traders may have used online chat rooms to set a benchmark for currency trades.
'As bad as Libor'The bank said in statement that it did not condone any form of market manipulation.
It said an oversight committee would lead further investigations into whether bank officials were involved in forex market manipulation or were aware of manipulation, or at least the potential for such manipulation.
It has called in law firm Travers Smith to assist with its investigation into what its officials might have known.
Regulators have expressed concern that alleged forex manipulation could become the latest banking scandal.
Traders are alleged to have colluded in setting certain key exchange rates in the foreign exchange market, resulting in big profits.
The head of the Financial Conduct Authority, Martin Wheatley, said last month that currency manipulation was "every bit as bad" as the Libor scandal, where banks including Barclays, Royal Bank of Scotland and UBS paid fines totalling $6bn relating to fixing inter-bank lending rates.
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