How did the Bank of England gain responsibility for setting interest rates in 1997?

The Bank of England gained the authority to determine short-term interest rates in 1997 when the newly appointed Chancellor of the Exchequer, Gordon Brown, ceded this power to the institution.12

Following the Labour Party's landslide victory in the 1997 general election, Brown took control of the United Kingdom's domestic economic policy and made the decision to grant the Bank of England independence in setting interest rates. This move significantly enhanced the bank's freedom of action regarding monetary policy, allowing it to operate with greater autonomy in managing the nation's economy.21