The task falls to chief operating officer Charlotte Hogg, who will (supported by McKinsey and Deloitte) seek out duplication of tasks and over-spending. She’ll also focus on reorganising the bank’s structure.
In the most recent minutes of the Court of the BoE, Hogg explained that ‘her intention … was to understand what had been done already, and to plot the approach for the future. She wanted an outcome where choices on resource allocation could be made.’ Not exactly laying out the detail, there is she? Although if the Bank has spent the last few years not making 'choices on resource allocation', that explains a lot about the financial state of the country...
Apparently the plan is not to cut costs, but rather to stretch existing budgets further. Part of it is integrating staff who were part of the now-defunct Financial Services Authority, many of whom are paid quite a lot more than their BoE counterparts, which is apparently causing ‘tension’.
Nevertheless: this is one of Carney’s many pet projects. In February, he told MPs that ‘transformed responsibilities will mean a transformed institution’. Hmm. Quite.