Ethnic minority applicants for Bank of England jobs are less likely to be hired or promoted and are more likely to receive lower bonuses and leave the Bank, a review has found.

The review also found that employees from ethnic minorities reported feeling less included and that they were less likely to believe they were treated fairly.

It concluded that while the BoE's leadership had indicated a "desire to make progress in racial/ethnic inclusion", its strategy "lacked focus and clarity".

The review was launched last year after the murder of George Floyd in the US prompted widespread public discussion about race and ethnicity and the Bank acknowledged it was "not moving far or fast enough on diversity or inclusion".

It has resulted in a new set of targets to increase ethnic diversity.

Bank of England governor Andrew Bailey said: "The experience of colleagues with different ethnic backgrounds has not reflected the kind of institution we want to be."

"I am confident we can make this institution an organization where everyone can thrive and feel proud."

The review found that while the Bank had taken on an ethnically diverse range of people for early career schemes such as its graduate program, there was a "leaky pipeline" for recruitment for roles advertised externally to experienced candidates.

That meant that while 44 percent of applicants for these jobs in 2019-20 were from ethnic minorities, only 38 percent were interviewed and 29 percent hired.

(With input from agencies)