BoE is not the independent body it once was

Neil Record writes for The Telegraph

Neil Record, Chairman of the IEA, has written for The Telegraph on the Bank of England’s diminishing independence due to the process of quantitative easing and the Bank of England Asset Purchasing Fund Ltd (APF).

“But what agency does the Bank of England have? “Interest rates” is the answer, and the Bank’s MPC’s reluctance to raise them may be partially explained by the pain that would be inflicted on the Bank of England via the APF’s balance sheet, and hence the Government, by a rise in both short and long-term interest rates.”

“The pressure imposed on the Bank of England’s Monetary Policy Committee is not overt, but deeply subtle. A confident, independent Bank would stare down the Treasury and its short-term political interests, and tell it that inflation is the Bank’s principal concern, and interest rates its only weapon. But the Bank is neither confident nor independent.”

Read the full article here.




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