
It’s time to clear out the Bank of England’s board
Liz Truss says she intends to review the Bank of England’s mandate, which has been fixed as a 2 per cent inflation target since Gordon Brown gave the Bank its independence in 1997. We’re told Governor Andrew Bailey, keen to keep his job, thinks a review is ‘probably the right thing’. But is it? A return to the long-term inflationary average of 2 per cent is highly desirable as soon as global price spikes subside – but if the odds-on next PM thinks the Bank incapable of achieving it, setting more dynamic inflation-and-growth objectives would surely be an overreach. Instead, maybe she should take her axe to the organisation, starting
