Tag: MPC

The MPC should now pause for breath

The Bank of England’s Monetary Policy Committee (MPC) increased UK interest rates by another half point this week, as most had expected, taking them to 4%. But it also hinted that rates may not rise much further - if at all. I think the MPC has got this about right. The decision to raise interest rates was … Continue reading The MPC should now pause for breath →

Why the Bank of England was right to raise rates

Many people have been baffled by the Bank of England’s decision to raise interest rates by a historically large three-quarters of a point this week, despite forecasting that the UK economy is sliding into recession. I understand this confusion, but there are three reasons why rates had to be increased. First, the job of the … Continue reading Why the Bank of England was right to raise rates →

The Bank of England shouldn’t be above criticism

If you believe many of the comments in the broadcast media and from the City, Liz Truss is threatening to undermine the independence of the Bank of England and rip up a policy framework that has served us well for decades. One member of the Monetary Policy Committee (MPC), Michael Saunders, has already felt the … Continue reading The Bank of England shouldn’t be above criticism →