A group of Conservative backbenchers has called for a review of the Bank of England’s independence, claiming that its actions have cost taxpayers thousands of pounds. The group of 44 MPs expressed concerns about the Bank’s approach to quantitative tightening (QT) and criticized the bank for making taxpayers liable for any losses incurred in selling government bonds. They endorsed a report by Conservative Way Forward, which estimated that taxpayers could face significant costs as a result of the bank’s actions.
The Bank of England has been independent of government since 1997, with its Monetary Policy Committee setting interest rates to maintain inflation around 2 percent. The MPs, including prominent figures such as former Tory leader Sir Iain Duncan Smith and former Cabinet ministers, accused the Bank of incompetence and questioned its impact on reducing borrowing costs and supporting the economy.
Conservative Way Forward’s chief executive emphasized the need for accountability in institutions like the Bank of England, particularly regarding their performance on inflation. The group criticized the Bank for forcing British taxpayers to bail it out, a practice not seen in other major central banks around the world.
Both the Bank of England and the Treasury responded to the criticisms, with the Bank highlighting the revenues it had sent to the Treasury and the uncertainty surrounding future profits or losses from their actions. The Treasury emphasized the importance of maintaining the separation of fiscal and monetary policy and underwriting the Bank’s asset purchases to meet monetary policy objectives.
Overall, the MPs’ concerns about the Bank of England’s actions and their potential impact on taxpayers highlight the ongoing debate over the bank’s independence and decision-making processes. Please rewrite this sentence.
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