Monetary stability means stable prices and confidence in the currency. Stable prices are defined by the Government's inflation target, which the Bank seeks to meet through the decisions taken by the Monetary Policy Committee (MPC).
Monetary policy in the UK usually operates through the price at which money is lent – the interest rate. In March 2009 the MPC announced that in addition to setting Bank Rate, it would start to inject money directly into the economy by purchasing financial assets – often known as quantitative easing.
Monetary Policy Committee
Interest rates are set by the Bank’s Monetary Policy Committee. The MPC sets an interest rate it judges will enable the inflation target to be met. More »
MPC Decisions, Minutes and Forecasts
The MPC’s decisions on interest rates are announced on a Thursday at 12 noon. Minutes of the MPC meetings are published simultaneously with the decision. More »