The Bank of England has underestimated the risk inflation poses to stability | Gerard Lyons

With inflation set to exceed the Bank's 2% target in 2022 - many people will be hit hard by a cost-of-living crisis

The Bank of England has badly misjudged the persistence of inflation. It is also underestimating the risks that its policies pose to financial stability.

The problems, however, don't stop there. For much of the last decade, its policies of low rates have contributed significantly to inequality, boosting asset and house prices.