The objectives of monetary policy are to keep inflation stable and to support economic growth.
The Bank’s Monetary Policy Committee (MPC) sets monetary policy to keep inflation low and stable, which supports growth and jobs. Subject to maintaining price stability, the MPC is also required to support the Government’s economic policy.
The Government has set the MPC a target for the 12-month increase in the Consumer Prices Index of 2%.
The MPC recognises, that the actual inflation rate can vary from the target rate as a result of shocks and disturbances. Attempts to keep inflation at target in these circumstances may cause undesirable volatility in output.
In exceptional circumstances, the methods to return inflation to target can vary. The methods used to keep inflation on target are outlined in the Monetary Policy Report.
The Monetary Policy Report
The MPC is committed to clear, transparent communication.
The Monetary Policy Report (MPR) is a key publication allowing the MPC to share its thinking and explain the reasons for its decisions.
The Monetary Report is produced quarterly by Bank staff under the guidance of the members of the MPC.
The full Bank of England Monetary Policy Reports can be accessed through the Publications page on the Bank of England website.