The MPC Comes of Age - speech by Rachel Lomax

The key characteristic of the current approach to monetary policy is encapsulated in the term 'constrained discretion', which she says is defined by Ben Bernanke as "an approach that allows monetary policy-makers considerable leeway in responding to economic shocks, financial disturbances, and other unforeseen developments. Importantly, however, this discretion of policy-makers is constrained by a strong commitment to keeping inflation low and stable."

Press release