Bank of England reduces expenses limit

The scandal has led to the central bank publishing its travel and expenses policy to the public for the first time.

Heavy criticism from MPs had come as a result of the “staggering” costs run up by US-based members of its financial policy committee.

Donald Kohn and Anil Kashyap, members of the Bank’s Financial Policy Committee spent £390,000 on travel expenses, including more than £11,000 on one flight.

The Bank said it is now placing a cap on the costs for hotels in certain locations and reducing the daily meal allowance from £50 to £40.

Under the policy, flights should also be booked “as early as possible” and “where you are unable to choose the cheapest flight you must confirm … the reason”.

Brad Fried, the chair of the court of the Bank of England, said: “We found our current policy to be broadly in line with that of other UK public authorities. However, there were some areas where we felt it was appropriate to clarify and tighten our policy to bring it into line with those other organisations.”