Demand for inquiry into Bank data breach

A FORMER interest rate-setter has joined MPS from across the political divide to demand an inquiry into a Bank of England data breach.

Andrew Sentance, previously of the Bank’s Monetary Policy Committee, said understanding how hedge funds accessed special ultra-fast audio of press conferences must be a priority for new Governor Andrew Bailey.

The Bank is reeling from the scandal after it was revealed that a third party supplier could provide hedge funds a quicker audio feed from the Bank’s press conferences, giving them a crucial edge on financial markets.

MPS from all three main parties also demanded a probe into the debacle.

Mr Sentance said: “The Bank should find out if they think markets have been moved in some way in an untoward fashion.” Ed Davey, the co-interim leader of the Liberal Democrats, said his party would back an inquiry by the Treasury select committee. Shadow chancellor John Mcdonnell said: “In any other walk of life heads would roll. Will any of the hedge funds or Bank’s supplier be held to account? It’s doubtful on past practice.”

Tory MP Steve Baker said the powerful backbencher group should begin an inquiry with the “utmost urgency when it is reconstituted in January. If there isn’t a law against this there should be.”

The central bank said the breach was not a cyber security issue, but the misuse of a back-up audio feed from the Bank’s press conferences by a thirdparty supplier. It has referred the matter to the Financial Conduct Authority.

Separately, a New York company asked financial journalists to take highspeed audio equipment to Bank of England press conferences in exchange for money, according to the Sunday Times.