Th2.6: Role of the Bank of England Flashcards
1
Q
Who controls monetary policy?
A
the Bank of England rather than the government
2
Q
What do the Monetary Policy Committee do?
A
make the most important decisions, including the BoE base rate and the actions over quantitative easing
3
Q
What is their main aim?
A
to keep inflation at 2%
4
Q
What happens if the rate of inflation goes below 1% or above 3%?
A
the BoE has to write to the Chancellor of the Exchequer explaining why this has happened and their plan to fix it
5
Q
What do they use in order to check whether the target has been met?
A
CPI
6
Q
How many people is the committee made up of?
A
nine people - five from BoE, including the Governor of the BoE, and the other four are independent outside experts, mainly economists
