Building up the economic picture
Economic statistics are published almost every day. A steady stream of new figures arrives on the desks of economists at the Bank of England each month. And on most days of the week the newspapers carry reports covering the latest information, often including comments about what the figures might mean for the MPC's next interest rate decision.
New information does not necessarily change the MPC's assessment of the economy. It adds to the current body of evidence. The latest figures might support an existing view or establish a clearer trend. But, equally, they might contradict other information and perhaps suggest that a trend is changing. The data rarely present a uniform or unambiguous picture.
each new piece of information adds
to the existing body of evidence
Whether new data clarify or complicate matters, no one piece of information can ever provide a complete picture of economic conditions. And the MPC never makes its decisions on the basis of a single piece of data. It uses different types of information and many data series to form its views. A wide range of official statistics and other information is reviewed and analysed in the Bank of England's quarterly Inflation Report and in the minutes of the monthly MPC meetings.
We do not expect teams to cover everything. The Bank of England is providing teams with a selection of the key data relevant to interest rate decisions. These are described in The Economy and Data sections. As new data become available, they will be sent to teams on a weekly basis and posted on the Bank's website. The datasheets in the Data section will updated monthly. You can, of course, look at any information you feel is relevant to your assessment of economic conditions. You might want to use information from newspapers and other reports. It is entirely up to you.
the MPC uses a range of different types of information
and many different pieces of data to form its views
Teams will also be able to read the Monetary Policy Committee's own economic assessment in the minutes of the monthly MPC meetings. These are published two weeks after each meeting. You can also read regular commentaries on the latest figures and economic situation in The Times and other publications. The following pages of this section should give teams a better feel for the kinds of data that are available.
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