Has Quantitative Easing compromised the Bank of England’s independence and credibility in the fight against inflation?
On Tuesday 16 May, the Economic Affairs Committee will hold its next oral evidence session for its inquiry on the Bank of England: how is independence working?
At 3pm, the Committee will hear from:
- Professor Christina Skinner, Professor of Legal Studies and Business Ethics at the University of Pennsylvania, and former legal counsel at the Bank of England
- Professor Tim Congdon, Chairman at the Institute of International Monetary Research, University of Buckingham
Topics the committee is likely to cover in this session:
- The benefits and weaknesses of the Bank’s operational independence;
- The risks of groupthink, in terms of governance, appointments, and other areas;
- The Bank’s secondary objectives and the risk of politicising the Bank;
- The extent of international cooperation between central banks and regulatory bodies to pre-empt financial instability;
- Consideration of a framework of relations between the Bank and the Treasury;
- Quantitative Easing and the current impact on inflation and the Bank’s credibility; and
- The possible impact of a CBDC on the Bank’s operational independence and accountability.
Meeting details
The committee’s work can be followed on its website and via Twitter.
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 is launching 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.