Oral question asked in the House of Lords, by Lord Bilimoria (Crossbench). It was answered by Lord Davies of Oldham (Labour) on Tuesday, 20 May 2008.

Bank of England: Inflation Target

Question: Whether the Monetary Policy Committee of the Bank of England’s inflation target of 2 per cent is constraining the committee’s ability to stimulate economic growth.

Answer: My Lords, the Bank of England Act 1998 sets the objective for the Bank in relation to monetary policy, which is to maintain price stability and, subject to that, support the economic policy of Her Majesty’s Government, including their objectives for growth and employment. Price stability is the MPC’s primary objective and an essential precondition for economic growth and so must be achieved first and foremost if economic stability is to be assured.

Secondary information

Type: Oral question
Reference: 701 c1354
Session: 2007-08
Oral question type: Lead
Procedure: Topical questions (HL)
Chamber / Committee: House of Lords chamber
Subjects: Bank of England Economic growth Inflation Monetary policy Monetary Policy Committee
Link: View this Oral question on www.publications.parliament.uk