Bank of England Governor to be questioned on inflation and interest rates
The Treasury Committee will question the Bank of England Governor and members of the Monetary Policy Committee (MPC) at 10:15 on Tuesday 20 February.
Figures released this week show the rate of inflation (CPI) remained steady at 4% in January – despite many economists forecasting an increase. This has led to heightened speculation that the Bank of England may consider cutting interest rates from the summer.
MPs are likely to ask witnesses about the future path of inflation, whether risks of over-tightening monetary policy have increased since the November forecast, and their views on the future of wage growth.
In correspondence with the Committee Chair Harriett Baldwin, the Bank announced an externally led review of its forecasting model led by Ben Bernanke, former US Federal Reserve Chief and Nobel-Prize winner.
Questions are likely to explore the progress of this review, which is due to be published in Spring, and the Bank’s recent forecasting performance.
Members may look at how the higher interest rates have passed through to mortgage rates and savings rates, and how households and businesses are coping with these changes.