Should the government repeal the Bank of England Act 1998?

Or at least Part II and Schedule 3 of it?

The Bank says we are in a recession and can see the government pulling all sorts of levers to stop that recession. And the Bank knows that current inflation is 95% cost-push and so quelling demand won't reduce it. Still the Bank pushes on with raising interest rates. They did exactly the same just before Gordon Brown's great depression (and as the economy recovered and then boomed, they kept rates at near zero for ten years on the trot).

Maybe it's time the government took back control of monetary policy so that they can align it with their other efforts to save the economy.

I can only assume you have massive short positions on sterling if you want that happen....

oh. Or possibly you are just really stupid?

You and your rhetorical questions Donnie

I look forward to the government of the day cutting rates a week before an election to fool the proles and then sticking them back up a week after the election.

And the Bank knows that current inflation is 95% cost-push and so quelling demand won't reduce it.

This is nonsense. It's a lie people tell themselves and others because they want to believe that this time the inflation is different. It's not. 1970s inflation following the oil crises was exactly the same as inflation today.

I’d be in favour of this, even tho it would be a classically populist tory move.

Keynes was right about everything. Monetarism is mad mumbo jumbo and is clearly wrong - the current cycle is an example of inflation that is very clearly not a monetary phenomenon.

such a move wouldn’t hammer sterling any more than it’s already being hammered catto

also, holding ourselves in hock to “the markets”

what r u thatcher or sthg

classic tory policy

centralise, centralise, centralise,

more government, more classics graduates picking winners, more government

always the same failed answers

You got any examples of that ever happening before 1998 chuffy?

I would be surprised but maybe it has happened before

Yes of course it should. Politicians should be directly accountable for key decisions like interest rates, not handing it off to bureaucrats.

Dont care who does it but would be good to try putting rates up to maintain some value in the currency. As RC said there is a lot of bollocks being used to justify keeping rates down. It really doesnt matter what the cause of the inflation is. If you want to maintain the value of GBP and get inflation back down to target, the B of E only has one tool - put up rates. Unfortunately yes this will cause a recession. But the mandate of the B of E is to maintain the value ot GBP by keeping inflation at about 2%. Not to avoid a recession at all costs.

No the mandate of the BOE is to maintain stable prices. the value of GBP has some input to stable prices. Economic acitivity in our internal market has a much bigger impact on prices.

It's actually in the part of the Act that the OP referred to.

11Objectives.

In relation to monetary policy, the objectives of the Bank of England shall be—

(a)to maintain price stability, and

(b)subject to that, to support the economic policy of Her Majesty’s Government, including its objectives for growth and employment.

And Treasury tell the Bank what the target inflation rate is that they want the Bank to achieve to maintain stable prices.

12Specification of matters relevant to objectives.

(1)The Treasury may by notice in writing to the Bank specify for the purposes of section 11—

(a)what price stability is to be taken to consist of, or

(b)what the economic policy of Her Majesty’s Government is to be taken to be.

No they should just employ someone competent that realises sentiment is a major part of their job. Draghi basically defeated the eurozone debt crisis with 3 words.

This is not cost push inflation predominantly. This is monetary inflation from COVID helicopter money that was tailing off despite the supply chain effects of Ukraine. It's like there was an out of control bonfire, Bailey went to get a fire engine just as it was subsiding, and when they arrived it had petered out. Some errant child threw a small log on the fire causing it to flare a bit and he doused it and the entire neighbourhood in millions of gallons of water causing millions of pounds more damage than the fire ever would because he saw them doing it on wildfires in the US.

TBF I hope Truss has realised the BoE's mistake and thought pump money into the economy by any means, as we are really fooked. Would have been nicer if Osborne and Cameron hadn't dismantled the country's education and health system and subsequent w**kers had concentrated on doing something now for the country instead of placating w**kstains on the curtain of society like Mogg and Redwood. Simple answer is the Tories are entirely to blame, so make sure you vote for anyone else when they eventually let you - odd they have plebiscites for major socio-economic decisions that are politically expedient for them but not for a govt.