The United Kingdom’s economic policy is adrift. That was the main conclusion from the House of Lords Economic Affairs Committee’s inquiry into the Bank of England’s failure to predict the worst inflation in 40 years. In a recent report, the Committee criticised the BOE’s internal culture and forecasting models, casting doubt on its ability to get inflation back to the 2% target by 2025.

The UK’s annual inflation rate reached a four-decade high of 11.1% in October 2022, while overall prices have increased 22% over the past three years. The House of Lords report attributed the BOE’s mistakes ...