Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking with (a) HM Treasury and (b) the Bank of England to prepare for any fluctuations in the value of the pound during the process of negotiations on the UK leaving the EU.

The independent Monetary Policy Committee (MPC) has operational responsibility for monetary policy. In determining monetary policy, the MPC takes account of the impact of the exchange rate on prices, but the UK does not have an exchange rate target. Instead, the exchange rate is allowed to adjust flexibly in response to economic conditions and movements in sterling are determined by market forces.