Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to (1) address, and (2) mitigate, any potential risks associated with falling interest rates; and what assessment they have made of the impact on (a) inflation, (b) consumer spending, (c) and financial market stability.

Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC), so the Government rightly doesn’t comment on the conduct of monetary policy. The Government fully supports the MPC as it acts to return inflation to target.

The Financial Policy Committee (FPC) is responsible for identifying, monitoring and addressing systemic risks to the UK financial system. Its assessment of the resilience of the system is regularly communicated through the Financial Policy Summary and Record (published quarterly), and Financial Stability Report (published biannually).

The Government constantly monitors the UK economy’s performance and considers its impact on households and businesses.