Bank of England

(asked on 17th November 2016) - View Source

Question to the HM Treasury:

To ask Her Majesty’s Government what assessment they have made of the extent to which the Bank of England should be independent of the Government.


Answered by
Lord Young of Cookham Portrait
Lord Young of Cookham
This question was answered on 24th November 2016

A comprehensive Review of the Monetary Policy Framework was published in 2013, considering the benefits and costs of a number of different monetary policy frameworks. The review concluded that operational independence has helped improve credibility and accountability of monetary policy, leading to stable inflation and inflation expectations, and in turn macroeconomic stability.

The current remit for the Monetary Policy Committee reflects the assessment set out in the 2013 Review, which reaffirms the Bank of England’s operation independence and a flexible inflation targeting framework.

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