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Treasury Committee launches inquiry into Bank of England independence 30 years on

The Commons Treasury Committee has opened an inquiry into whether the Bank of England's monetary policy independence is still fit for purpose nearly 30 years after it was granted.

By James Calloway · · 1 min read

The House of Commons Treasury Committee has launched a new inquiry into whether the Bank of England’s monetary policy independence is still fit for purpose, nearly 30 years after the Bank was handed operational control of interest rates.

The inquiry, titled “Bank of England monetary policy independence at 30: Still fit for purpose?”, will examine whether independence is working and whether changes are needed to ensure the Bank’s remit still meets the needs of the UK economy, according to the Committee’s press release.

The Bank was given operational independence to set monetary policy in 1997, initially by setting interest rates and, since 2009, through quantitative easing and tightening. The Committee notes that CPI inflation has averaged 2.5% since independence, compared with 7.3% between 1967 and 1997 — but that the national debt is now far larger and inflation has sat above target for most of the last five years.

MPs will assess how independence has materially affected the country, including tackling inflation and lending credibility to the UK economy, how the Bank’s approach compares with central banks elsewhere, and whether actions by the Bank or the government have raised questions about independence.

“The key questions are, how is it working and is the current system fit-for-purpose 30 years later?” said committee chair Dame Meg Hillier.

The Committee is calling for written evidence by Friday 6 November 2026, with the full terms of reference published alongside the announcement.

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