Join our community of smart investors
OPINION

Is the Bank of England fit for purpose?

Is the Bank of England fit for purpose?
August 30, 2022
Is the Bank of England fit for purpose?

The Bank of England (BoE) is in hot water: at 10.1 per cent, inflation is soaring past its 2 per cent target. Business and energy secretary Kwasi Kwarteng was far from alone in concluding earlier last month that “something has clearly gone wrong”. Attorney general Suella Braverman was similarly unimpressed, arguing that the government needs to look at whether the BoE is “fit for purpose”.

The BoE has been no stranger to criticism over the past 12 months. But now one of its most vocal critics might soon be prime minister. Liz Truss told an event in Cardiff that she wants “to change the Bank of England’s mandate to make sure in future it matches some of the most effective central banks in the world at controlling inflation”. She added that “the last time the mandate was looked at was in 1997 under Gordon Brown. Things are very, very different now”. With the Conservative party leadership election due to conclude on 5 September, and with fellow critics Kwarteng and Braverman likely to play a key role in a Truss cabinet, these reproofs come at a crucial moment.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in