Treasury Committee to examine Bank of England’s forecasting and how to bring down inflation
The Treasury Committee will examine the Bank of England’s ability to forecast inflation and how inflationary pressures can be reduced at 2.15pm on Wednesday 5 July.
Meeting details
In a session with economic experts and former members of the Bank’s Monetary Policy Committee (MPC), the cross-party Committee of MPs will explore how the Bank forecasts inflation, the causes of inflation, and whether the Bank’s forecasting models are insufficient.
The MPs are likely to gather witnesses’ views on whether Brexit, ‘greedflation’ or labour market issues are causing inflation in the UK to remain higher than in other advanced economies, and if inflation is becoming embedded in wage and price setting.
The Committee will examine what the MPC should do next to combat high inflation, the risk of ‘over-tightening’, and whether the Bank has lost public trust in its ability to combat inflation.
Earlier this month, the Bank’s Chair of Court confirmed that an inquiry would be launched into the Bank’s inflation forecasting, following calls from the Committee.