Regardless of the differences just mentioned, one feature common to both economies has been that both have enjoyed a stability-oriented monetary policy over the past decade. The fact that the “Old Lady of Threadneedle Street” – the Bank of England – was granted independence ten years ago is certainly among the prominent factors explaining the UK’s economic performance during the past decade.
Let me continue with a brief look at European monetary policy. 3  European monetary policy  Last week, the ECB’s Governing Council decided to raise the key ECB interest rate by 25 basis points to 4%. This decision was taken in view of the prevailing upside risks to price stability over the medium term.