THIS YEAR SEES THE 25th anniversary of the Bank of England’s operational independence, made effective in May 1997 and granted formally in a 1998 Act. Almost certainly, 2022 will also see the most above-target inflation numbers since that change. The Bank will be heavily criticised and proposals will be made for reform. What has gone wrong?
The crucial import of operational independence was that the Bank was given more or less exclusive responsibility to keep inflation on track. Its Monetary Policy Committee was meant to be free
