Monetary Policy Committee (MPC)
The Monetary Policy Committee (MPC) is a committee of the Bank of England responsible for setting the official interest rate in the United Kingdom. The MPC is made up of nine members, including the Governor of the Bank of England, the Deputy Governor for Monetary Policy, the Chief Economist, and six external members appointed by the Chancellor of the Exchequer. The MPC meets eight times a year to decide on the official interest rate, and its decisions are announced in a press release.
History of the Monetary Policy Committee
The Monetary Policy Committee was established in 1997 as part of the Bank of England Act 1998. The Act gave the Bank of England operational independence from the government in setting the official interest rate. The MPC is responsible for setting the official interest rate in order to meet the government’s inflation target. The MPC is also responsible for monitoring and assessing economic developments and making recommendations to the government on monetary policy.
Table of Comparisons
| Year | Official Interest Rate |
|---|---|
| 2020 | 0.1% |
| 2019 | 0.75% |
| 2018 | 0.5% |
| 2017 | 0.25% |
Summary
The Monetary Policy Committee (MPC) is a committee of the Bank of England responsible for setting the official interest rate in the United Kingdom. The MPC was established in 1997 as part of the Bank of England Act 1998 and is responsible for setting the official interest rate in order to meet the government’s inflation target. For more information about the MPC and its decisions, visit the Bank of England website.
See Also
- Inflation Target
- Bank of England
- Interest Rate
- Monetary Policy
- Central Bank
- Exchange Rate
- Quantitative Easing
- Fiscal Policy
- Economic Growth
- Economic Cycle
