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Their work includes generating income through tax and borrowing and controlling government spending. The MPC sets and announces policy eight times a year roughly once every six weeks. The MPC has nine individual members.
Before they decide what action to take, they hold several meetings to look at how the economy is working. It can take around two years for monetary policy to have its full effect on the economy. So MPC members need to consider what inflation and growth in the economy are likely to be in the next few years.
We explain the reasons behind our monetary policy decisions for example to raise or lower interest rates in our quarterly Inflation Report. The briefing includes a report on business conditions around the UK from our agents.
First meeting Members discuss the most recent economic data. The meeting is normally held on the Thursday a week before the announcement. Second meeting Members debate what monetary policy action to take.
The meeting is normally held on the Monday before the announcement. Final meeting The Governor recommends the policy he believes will be supported by the majority of MPC members and the members vote. The meeting is on Wednesday that week.
If there is a tie, the Governor casts the deciding vote. Any member in a minority is asked to say what stance of policy they would have preferred.
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Trolltunga, translated to “Troll’s Tongue,” is a cliff rock jutting out about meters above lake Ringedalsvatnet in Norway. It was formed about 10, years ago from glacier erosion.