In its February 2011 Consultation Document and June 2011 White Paper, HM Treasury said that the interim Financial Policy Committee (FPC) should provide advice on which macroprudential tools the statutory FPC would need powers of Direction over in order to meet its proposed objective. These powers of Direction would be in addition to the FPC’s powers of Recommendation. HM Treasury had requested that the Committee give this advice in the first half of 2012. At its meeting on 16 March, the FPC agreed this advice and it is contained in its statement from the meeting (see link below).
Also linked below is the letter sent by the Governor to the Chancellor relating to the advice, and the reply from the Chancellor to the Governor.
The Committee also considered the outlook for financial stability, including progress in implementing its previous recommendations, which is also described in the statement.
Financial Policy Committee statement from its policy meeting, 16 March 2012
Letter from the Governor to the Chancellor (327k)
Letter from the Chancellor to the Governor
HM Treasury website