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

Untitled Monetary Policy, Financial Stability, and a Prosperous Economy Through monetary policy, the Bank of England, in common with other central banks has, in the past few years, made more substantial interventions in the economy than has been the practice in the past and they have also used more tools to do so. [...] 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. [...] Monetary Policy, Financial Stability, and a Prosperous Economy 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.