UK Economy

Debate between Baroness Vere of Norbiton and Baroness Lawlor

Wednesday 21st February 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

As the noble Lord will be aware, the reason interest rates are particularly high is to control inflation. The Bank of England now expects inflation to get back to the target of around 2% in the early summer. If that can happen, then of course interest rates would be able to come down.

[Baroness Lawlor (Con)]

Will my noble friend consider a longer-term anti-inflationary policy such as ensuring that the Monetary Policy Committee of the Bank of England, and the governor, build into their forecasting model a measure to take account of the growth in money supply each year?

[Baroness Vere of Norbiton (Con)]

I will take that idea back to the Bank of England.