Reform UK; Reform the Bank?

Nigel Farage’s recent criticism at the Bank of England suggests more than opposition rhetoric; they hint at future policy. The UK’s flexible institutional setup allows for swift changes to its monetary regime, and markets may price in this risk early if Reform UK’s polling strength continues or central bank reform enters its manifesto. This could steepen gilt curves, raise risk premiums, weaken sterling, and hurt rate-sensitive equities. Even modest reforms could trigger outsized market reactions if institutional credibility erodes.