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<p><strong>The UK’s monetary policy framework, set out in the Bank of England Act
1998, gives operational responsibility for monetary policy to the independent Monetary
Policy Committee (MPC).</strong></p><p> </p><p> </p><p> </p><p><strong>The MPC’s macroeconomic
policy tools, including quantitative easing, are designed to affect the economy as
a whole, in order to meet the 2 per cent inflation target over the medium term.</strong></p><p>
</p><p> </p><p> </p><p><strong>The Bank of England’s paper, “The United Kingdom’s
quantitative easing policy: design, operation and impact”, published in 2011, notes
that, “Asset purchases may also have a stimulatory impact…by influencing bank lending,
though this channel would not be expected to be material during times of financial
crisis.”</strong></p><p> </p>
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