Recommendation 7

It is concerning that the Bank’s remit has expanded considerably in terms of statutory objectives, functions, regulatory principles and matters to which it should ‘have regard’ and ‘consider’, in order to support the Government‘s economic policy. This jeopardises the Bank’s ability to prioritise price and financial stability; risks drawing it into the Government’s wider policy agenda; and increases the potential for conflict between the Bank’s objectives. We recommend that the number of matters the Bank should ‘have regard to’ or ‘consider’, as set out in the policy committee remit and recommendation letters, be pruned by HM Treasury to ensure the Bank can focus on its primary objectives of maintaining price and financial stability.