27 November 2009

The tenth annual Target Two Point Zero - Bank of England and The Times Interest Rate Challenge - is underway, attracting nearly 300 entries from schools and colleges across the United Kingdom.

Each team of four students, aged 16 - 18, competes in one of the 43 regional heats. Like the Bank of England's own Monetary Policy Committee, the teams must consider the factors affecting the UK's economic and inflation outlook. Then they have to decide what interest rate should be set - and any other monetary policy action that is required - to meet the Government's 2.0% inflation target. After outlining the main economic issues and giving their decision, the team is then questioned by a judging panel. The winning team from each regional heat goes on to one of the six area finals to be held in February 2010, with the national final being held on 19 March at the Bank of England in London.

The team from City of London Freemen's School, Ashtead won the regional heat held at Farnham Castle International Conference Centre on 27 November. They recommended an interest rate of 0.5% compared with the Bank of England's official rate of 0.5% set by the Monetary Policy Committee on 5 November 2009. They also recommended a total of £200bn of asset purchases under the Asset Purchase Facility, compared with the £200bn agreed by the MPC on 5 November 2009.

The team from The Sixth Form College Farnborough were runners-up. The other teams in the heat were: Sir William Borlase's Grammar School, Marlow; Langley Grammar School, Slough; St Crispin's School, Wokingham and Tomlinscote School and Sixth Form College, Camberley.

Notes to Editors

If you would like to take a photograph of the team(s) from your area or would like to interview team members, please call the Bank of England Press Office on 020 7601 4411 for contact details.

For further Challenge information see: www.bankofengland.co.uk/education/targettwopointzero/index.htm