The inflation spike caused by external factors including the Ukraine war might be over, but the importance of interest rates to the UK economy isn’t going away. Continuing global instability and the newly elected Labour government’s commitment to growing the economy mean the Bank of England will have to stay on the lookout for signs of inflation returning.
Even beyond what level to set the country’s interest rate, however, the nine members of the Bank of England’s Monetary Policy Committee (MPC) face lingering questions about how to respond to serious criticism it has received in recent years.
