This article from the Economist looks the Bank of England's response to economic challenges under Governor Andrew Bailey's leadership so far. It rates the Bank of England pretty well in terms of managing inflation expectations and it's response to the Kwarteng budget, but also highlights forecasting challenges, communication missteps, and the political landscape's impact on its future operations. Overall it judges that the bank's credibility, though tested, remains mostly intact as it navigates an increasingly volatile and inflation-prone economic environment.
Here are some comprehension questions you might want to set on it:
What events marked the beginning of Andrew Bailey's tenure as governor of the Bank of England?
Identify the four other economic shocks the Bank of England has faced under Andrew Bailey’s leadership.
What was the peak inflation rate in late 2022?
When are Central Bank tools said to be 'of little use'?
How have Britons' long-term inflation expectations changed since Andrew Bailey took charge?
How did the Bank of England handle the initial rise in inflation?
What policy did the Bank of England continue deep into 2021, and what was its estimated financial impact?
Who reviewed the Bank of England's forecasting practices, and what are their credentials?
What change in economic behaviour from the 1990s did the Bank of England not anticipate?
What are some recommended improvements for the Bank of England’s forecasting?
How well did the Bank of England respond to the fiscal plan introduced by Liz Truss and Kwasi Kwarteng, according to the article?.
How will the focus of the Bank of England have to change in the future?