Inflation

Baroness Falkner of Margravine Excerpts

Wednesday 19th January 2011 Lords Chamber

[Lord Sassoon]

I agree absolutely with my noble friend that these are all critical policies to ensure that growth gets going again. It is precisely by the Government both reducing the deficit and ensuring growth that the Monetary Policy Committee of the Bank of England will have a firm policy background against which to make its decisions that bear on the inflation target.

[Baroness Falkner of Margravine]

Can my noble friend indicate at what stage, after a series of letters from the MPC to the Chancellor, the latter would be prepared to reconsider the inflation target of 2 per cent and revise it in either direction?

[Lord Sassoon]

My right honourable friend the Chancellor has no intention of revising the target for inflation. It is a matter on which he can write a new instruction whenever he wants, but he has no such intention.