MPs are right to question Bank of England's monetary policy

Ultra-low interest rates and quantitative easing were needed in 2008, but keeping them for too long may precipitate the next crisis

A long, hard look at the way the Bank of England has conducted monetary policy since 2008 is long overdue so the announcement by the Treasury select committee that it is launching an inquiry into ultra-low interest rates, quantitative easing and forward guidance is welcome.

It is worth recalling that when Threadneedle Street slashed the cost of borrowing to 0.5% and began using asset purchases to print money both were seen as temporary measures to deal with an immediate crisis.