The upper house of the UK Parliament, the House of Lords, has released a report on the Bank of England that examines the Bank’s response to rising inflation.
UK inflation began to rise in 2020 and, eventually, the Bank raised its cash rate (“Bank Rate”) 14 times. The Economic Affairs Committee of the Lords says significant reform is needed at the Bank:
- policymakers too slow to respond
- policymakers too reliant on inadequate forecasting models
The Financial Times have a piece, gated but here is the link if you can access it.