Currently, as of 1998, the UK Central Bank is Independent to make monetary policy decisions, however their objectives are still set by government.
Two other Central Banks which follows the fully independent system, where objectives and mechanisms are set by the Central Bank without any government involvement, are the US Federal Reserve and the EU Central Bank.
Many people argue that an independent central bank is undemocratic, however others argue that it takes monetary policy, which could greatly damage or help the country, out of the political ring so politicans cannot use it to gain votes in the run up to an election, and because politicans lack the sophisticated understanding or expertise to set monetary policy. At the same time, some people argue that an independent central bank can be damaging as it separates decision making of fiscal and monetary policy.
Should the UK’s Central Bank be Independent to set monetary policy objectives? Should it remain as it is? Or should the central bank not be independent?