Bank of England Under Scrutiny!
The Bank of England (BOE) is responsible for combating inflation and maintaining it close to the target of 2%. Recently, the UK has experienced increased inflation; in 2022, the average inflation rate was 9.1%, and in 2023, it stands at 7.5%. The House of Lords argues that the levels of inflation should have been addressed more effectively and reduced more quickly.
Recommendations include diversifying the intellectual backgrounds of BOE members to foster a culture of challenging and varied perspectives. The committee calls for a review of senior appointments, emphasizing the importance of a diverse selection process in terms of experience and alternative backgrounds.
Concerns are also raised about the perception of the BOE’s independence, particularly regarding the Treasury’s central role in top appointments and the backgrounds of some deputy governors. The report suggests regular parliamentary reviews every five years to address a perceived ‘democratic deficit’.
The Bank of England acknowledges the report and states that it is carefully considering the recommendations and will provide a formal response in due course.
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