Select committee: Economic Affairs Committee
Conclusion 2
1st Report - Making an independent Bank of England work better
Published 27 Nov 2023
Paragraph 36
Economic Affairs Committee Bank of England: how is independence working? All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Some witnesses made a case for reviewing the inflation target. While the Chancellor can change the target, the disadvantages of doing so when inflation is above target, outweigh the advantages. This is the case given the potential impact on the Bank’s credibility. When inflation is low the Bank should be cautious about the impact of a prolonged period of loose monetary policy on asset prices and financial stability.
From: Economic Affairs Committee, 1st Report - Making an independent Bank of England work better, paragraph 36, 27 November 2023
Government response
A response document is linked to this report, dated 7 February 2024. Response attribution to this conclusion has not been verified. Read the response document ↗