Date: From Tuesday 2 May
Time: 10am - 16.30pm
Category: Exhibitions and Displays
Our new display celebrates the twentieth anniversary of the Government giving the Bank of England independence to make decisions on interest rates.
On 6 May 1997, the new Chancellor Gordon Brown granted the Bank of England this new power and from this point onwards, the Bank has had operational responsibility for setting interest rates. Using original material from the Bank’s Archive, this new display will explore the history and ideas behind the creation of the Bank’s monetary policy framework, as well as giving some insight into what the Bank does behind the scenes.
he display will outline the arrangements put in place between the Bank and the Treasury to make sure that the Bank sets monetary policy to achieve the Government’s inflation target. It will also explore the notions of ‘operational responsibility’ and ‘accountability’. The 1997 changes included the creation of the Bank’s Monetary Policy Committee
(MPC), which meets regularly to set interest rates. The display will cover the early planning to set up the MPC, and look at some of the work that goes on inside the Bank to feed into monetary policy decisions.