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Select committee: Economic Affairs Committee

Letter from Andrew Bailey, Governor of the Bank of England, to the Chair of the Economics Affairs Committee (26 January 2024)

Published 7 February 2024

Economic Affairs Committee Bank of England: how is independence working? Report on parliament.uk ↗

At a glance

The government's response

This document responds to 1st Report - Making an independent Bank of England work better.

This is the government's response, published 7 February 2024.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Bank of England's response welcomes the Committee's report and its conclusion on operational independence, while noting that a number of recommendations are directed to the Government or Parliament.

  • On the MPC's remit, the Bank says the Government defines price stability, the Chancellor re-confirmed the 2% target in November 2023, and "The MPC remains absolutely committed to the 2% target."
  • On a memorandum of understanding for debt management, the Bank says existing arrangements are in public documents and "it is not clear that a memorandum of understanding would add further information not already in the public domain".
  • On a digital pound, the Bank says the current design phase aims to develop an evidence base to inform a decision "later this decade" on whether to proceed to a build phase.
  • On Dr Ben Bernanke's review, the Bank says he is working independently and that he "will be happy to appear before the EAC to discuss his recommendations in due course".

Read the government's response ↗ Report an error

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