Monetary Policy and Manufacturing Industry - speech by Mervyn King

Mr King highlighted the fact that since the Monetary Policy Committee was set up in May 1997, inflation has remained close to target and that, during this time, policy had reacted to large swings in the world economy and to the prolonged strength of sterling. He said: “Interest rate changes have maintained stability in the economy as a whole. But manufacturing has been hit disproportionately, especially by the rise in sterling.”

Press release