ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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raise inflation rates
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raise interest rates
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lower inflation rates
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lower interest rates
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Detailed explanation-1: -The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 1 February 2023, the MPC voted by a majority of 7–2 to increase Bank Rate by 0.5 percentage points, to 4%.
Detailed explanation-2: -Monetary policy will ensure that, as the adjustment to these shocks continues, CPI inflation will return to the 2% target sustainably in the medium term. Monetary policy is also acting to ensure that longer-term inflation expectations are anchored at the 2% target.
Detailed explanation-3: -We set monetary policy to achieve the Government’s target of keeping inflation at 2%. Low and stable inflation is good for the UK’s economy and it is our main monetary policy aim. We also support the Government’s other economic aims for growth and employment.
Detailed explanation-4: -That includes the lending and savings rates offered by high street banks and building societies. Bank Rate is currently 4%.