Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department plans to undertake a review of the autonomy of the Bank of England on monetary policy.

The Chancellor is fully committed to the independence of the Monetary Policy Committee (MPC) in setting monetary policy, and has no plans to review this. At Autumn Statement on 17 November, the Chancellor re-affirmed the MPC’s remit and primary target of achieving 2% CPI year on year, and stated that this government will not change the definition of price stability.

The Chancellor and the Governor of the Bank of England remain in close contact to ensure that monetary and fiscal policy are coordinated. The government also continually monitors economic developments, including inflation, to consider their impact on businesses and households. The government does not comment on the conduct or effectiveness of monetary policy.