The Bank of England is no longer held directly responsible for inflation but must juggle multiple, sometimes competing objectives. As a result price stability, the Bank’s founding mission, risks being sidelined, says Jonathan Eida

While parliament took its summer recess, the Bank of England was busy. The Monetary Policy Committee (MPC) last month announced another interest rate cut. The base rate now sits at four per cent, down 1.25 percentage points from its August 2023 peak.

Latest data shows inflation remains at 3.8 per cent, almost double the Bank’s two per cent target. Since July 2022, inflation has only hit or fallen below target in three months and not once in the past year. This persistent failure raises questions about whether the Bank is delivering on its core responsibility of price stability.

Meanwhile, borrowing costs are climbing. The

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