Deep Dive: Abandoning BoE's 2% inflation target could dent its credibility

Symbol of price stability

Following years of elevated inflation, serious questions have emerged about whether the Bank of England’s 2% inflation target remains fit for purpose.

Originally established to anchor expectations and support economic stability, the target has faced mounting scrutiny in a global environment transformed by supply shocks, geopolitical tension and structural cost pressures. Some economists and market strategists argued that clinging to the 2% figure has become unrealistic. However, others warned abandoning it could damage the Bank's credibility and destabilise the very expectations the target was designed to uphold. Changing economic landscape Daniele Antonucci, chief investment officer at Quintet, stated the global economy has chang...