Source · Select Committees · Treasury Committee
Recommendation 9
9
Acknowledged
Paragraph: 74
We note the new remit provided to the Monetary Policy Committee, which will allow it...
Conclusion
We note the new remit provided to the Monetary Policy Committee, which will allow it to rebalance its Corporate Bond Purchase Scheme to take account of the climate impact of the bonds it holds. We will continue to scrutinise this process and will examine how any changes are enacted, and how those changes impact on the other policy objectives and the independence of the Monetary Policy Committee.
Government response summary AI-generated
The government clarified that the MPC's primary objective is price stability, and its secondary objective, updated to include environmental sustainability, leaves it to the Bank of England to determine how to support these goals.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
74
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
The Monetary Policy Committee (MPC)’s primary objective of maintaining price stability is unchanged. Subject to achieving its primary objective, the MPC’s secondary objective is to support the economic policy of the Government–the Government has updated the text describing its economic strategy to reflect the importance of environmental sustainability and transitioning towards net zero. It is for the Bank to judge how it can support the Government’s green and other economic objectives while achieving its primary objective of price stability.
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