Monetary Policy, Financial Stability, and a Prosperous Economy - Mandate – Monetary Policy
Coherent Identifier About this item: 20.500.12592/c96b61

Monetary Policy, Financial Stability, and a Prosperous Economy - Mandate – Monetary Policy

17 November 2022

Summary

Mandate – Monetary Policy The Bank of England shall have as its monetary policy objectives: • To maintain price stability around a symmetrical target for annual inflation that is set by the government from time to time and to maintain stability within the financial system • Without prejudice to the above, to ensure that its monetary policy decisions contribute to: • Investment-led and productivity. [...] • These bodies will be composed of heterodox economists and economic sociologists as well as MPs from across the political spectrum drawn from the Treasury Select Committee • Each body will produce its own monetary policy recommendations and submit them in confidence to the Bank in time for consideration at the pre-MPC meeting • The Bank will publish these recommendations simultaneously with its a. [...] A Better And More Sustainable NHS And Social Care Page 1 The Bank will publish on a regular basis: • An evaluation of the effect of monetary policy on financial stability • Evidence on the effectiveness of the transmission mechanisms to the real economy of its various monetary policy tools. [...] • An evaluation of the distributional consequences of different monetary policy decisions and tools The Bank shall present its findings on a regular basis to HM Treasury and the House of Commons Treasury Select Committee Regulatory Functions Apart from the Bank’s independently operated monetary policy function, the government may, from time to time, delegate certain regulatory functions to the Ban. [...] We propose to maintain the current arrangements: • the Financial Policy Committee constituted as a sub-committee of Court • the Prudential Regulatory Authority constituted as a subsidiary of the Bank Additionally: • the FPC will have a role in determining the extent to which the structure and function of financial markets are contributing to sustainable investment-led and productivity driven growt.

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