Why aren’t our politicians running the UK economy?

Setting interest rates is a crucial economic policy tool with significant impacts on people’s lives, particularly through the housing market. Yet, these decisions are made by the Bank of England’s Monetary Policy Committee, comprising nine unelected experts. This reflects a wider trend of delegating authority to independent bodies, seen as enhancing efficiency and impartiality. However, this shift raises concerns about democracy and accountability. Interest rate decisions are political, involving trade-offs between inflation and unemployment, and are often subject to groupthink within institutions. While expertise is valuable, elected officials should ultimately be responsible for political decisions affecting the nation.