Treasury Committee to question Bank of England on inflation and interest rate rise
The Treasury Committee will question the Bank of England Governor and members of the Monetary Policy Committee (MPC) on August’s interest rate rise at 10am on Wednesday 7 September.
At its August meeting, the MPC voted to raise the UK’s interest rate to 1.75 per cent and forecast that inflation would reach 13 per cent. MPs will question witnesses on the increase, the prospect of further interest rate rises, and the outlook for inflation and the broader economy.
Witnesses’ views are likely to be sought on recent reports that inflation could reach 18 per cent, the Bank’s record on taming inflation so far, and the prospect of a recession at the end of the year.
Purpose of the session
Committee members are likely to discuss the Bank’s outlook for the labour market, international trade, and the impact of gas and energy price rises on inflation in the UK.
MPs may seek witnesses’ views on the prospect of threats to independence of the Bank of England, changes to its remit, and whether political pressure has influenced the MPC’s decision-making.