Bank of England operational independence: City minister to give evidence

• Andrew Griffith MP, Economic Secretary to the Treasury
• Lowri Khan, Director of Financial Stability, Treasury
• Neil McMurdo, Deputy Director, Macroeconomic Policy, Treasury.

This evidence session, which is open to the public, will be held in Committee Room 3 of the House of Lords. It will also be streamed live on Parliament TV.

Topics the committee is likely to cover in this session include:

• Whether the Bank’s independence is secure.
  
  
• Successes and failings since 1998 of an operationally independent Bank of England.
  
  
• The Treasury’s theory of inflation.
  
  
• Whether the Bank, and central banks in general, have fallen victim to groupthink and/or poor models.
  
  
• The impact the introduction of a retail CBDC would have on the Bank’s independence.
  
  
• Whether the Bank’s price stability objective is suitably defined.
  
  
• The effectiveness of the Bank and Treasury’s relationship from the perspective of monetary and fiscal policy coordination.
  
  
• Whether quantitative easing and the size of the Bank’s balance sheet has compromised its independence and credibility in the fight against inflation.

More about this inquiry 

2023 marks the 25th anniversary of the Bank of England Act 1998. This Act gave the Bank of England its independence and reformed the structure, responsibilities and functions of the Bank.

The Economic Affairs Committee has launched an inquiry to examine how operational independence is working. It will focus on the Bank’s role and remit; whether the governance structures of the Bank are appropriate; and how the Bank is being held accountable for its actions.

It will not look at individual policy decisions that the Bank has taken.