Overview

• The Bank of England's focus on net zero and other priorities 'jeopardises' its ability to fight inflation, warns the Lords Economic Affairs Committee.
• The committee suggests that the Bank's responsibilities should be 'pruned' by the Treasury to ensure it can focus on its primary objectives of maintaining price and financial stability.
• The Lords committee also calls for Parliament to be given more power to hold the Bank to account, citing a 'democratic deficit' due to significant decisions being made by a small group of unelected officials.
• The Bank's remit has expanded considerably in recent years, drawing it into the Government's wider policy agenda and increasing the potential for conflict between the Bank's objectives.
• The Lords committee recommends that the Bank should focus more on changes in the money supply and have a wider range of views among its interest rate-setters to better spot future surges in inflation.