The Bank of England has built an enviable reputation as a central bank at the forefront of modern policymaking. This was demonstrated yet again as the Covid crisis unfolded, with coordinated monetary, macroprudential and microprudential actions alongside fiscal measures that the IMF described as “one of the best examples of coordinated action globally”.

The results speak for themselves. Prior to the pandemic, the UK stood out among its G7 peers, delivering well-anchored inflation expectations, low unemployment against a backdrop of high and rising labour force participation, and solid growth.