The Bank of England's Monetary Policy Committee yesterday welcomed measures that would allow it to meet less frequently.

An influential group of MPs proposed that the MPC should be allowed to scrap its compulsory monthly meeting in favour of fewer gatherings.

The nine-member MPC said that the need for change was “not pressing”, but it would “welcome the scope for greater flexibility in regard to the timing of its meetings”. The proposals, contained in the Treasury Select Committee's report on the tenth anniversary of the MPC, suggested that the Bank's Governor should decide the dates of meetings, that there should be at least eight a year and that additional meetings could be held in “emergency cases”.

The Select Committee also said that it would be beneficial for financial markets if they could see instantly how much support there was for a rate decision, but the MPC said it was opposed to revealing how each member voted when it made a decision on interest rates. “Knowledge of which way someone voted does not explain why they voted that way. Moreover, the vote does not always provide a good guide to how close a rate decision was,” the MPC said.

Some economists believe that the monthly meetings chime with the rhythm of the economic cycle as they take place when little other data is being released, but others feel the enforced regularity leads to too great an emphasis being placed on the most recent data and sometimes hinders the MPC from looking at the wider economic picture.

Under the terms of the Bank of England Act 1998, the MPC must meet every month, although it is allowed to hold additional meetings. The only time it held such a meeting was in the wake of the September 11 terrorist attacks in the United States, when it cut rates by a quarter point.

Sir Alan Budd, a former member of the MPC, welcomed the potential for greater flexibility. He said: “Reducing the number of meetings from 12 could well be sensible.”

The Government was less enthusiastic. It said: “What is important is that the MPC has the flexibility to act when cirumstances change in unforeseen ways and the present framework affords them that flexibility.”

Vicky Redwood, UK economist at Capital Economics, said: “It would make sense to make the MPC meetings a bit more flexible.”

Sir Mervyn King was last week appointed as Governor of the Bank of England for a further five-year term to start when his current tenure ends in June.

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