Bank of England
The Bank of England is the UK's central bank, operating independently (since 1997) from government. The Monetary Policy Committee sets interest rates monthly to achieve the 2% CPI inflation target. The Bank also supervises financial institutions and manages the nation's foreign exchange.
Real World
When Governor Andrew Bailey wrote to Chancellor Jeremy Hunt in late 2022 explaining why inflation had exceeded the 2% target by more than 1 percentage point, this 'open letter' system demonstrated the Bank's accountability framework in action.
Exam Focus
Evaluate independence by weighing credibility and long-term focus against democratic accountability and inflexibility during crises.
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