Chancellor Hunt reaffirms commitment to BoE's 2% inflation target

Letter to governor Andrew Bailey

Chancellor Jeremy Hunt has reaffirmed the government's commitment to Bank of England's independence and its 2% inflation target, despite exceeding that level for more than two years.

Annual price growth in the UK, which sat at 4.6% last month, has not met the Bank's 2% target since July 2021, reaching a peak of 11.1% in October last year. In a letter to Bank of England governor Andrew Bailey as part of the chancellor's Autumn Statement on Wednesday (22 November), he said the government was "fully committed to the Monetary Policy Committee's independence". ECB warns high rates are pushing economy towards fragility The letters came more than a year since former prime minister Liz Truss considered curbing the Bank of England's independence as part of her leadershi...