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<p>Monetary policy is the responsibility of the independent Monetary Policy Committee
(MPC) of the Bank of England, so the government rightly does not comment on the conduct
of monetary policy. The MPC publishes its forecasts on a quarterly basis to inform
its monetary policy decisions.</p><p>The Office for Budget Responsibility (OBR) is
the UK government’s independent official forecaster and publishes economic and fiscal
forecasts at least twice per year alongside fiscal events. The OBR provides independence,
transparency and credibility via its assessment of the economic and fiscal position
and as the official forecaster it is right that it is the basis for government fiscal
policy decisions.</p><p>The MPC and the OBR have different responsibilities, so it
is right that they produce their own forecasts. The MPC’s forecasts reflect policy
announced by the government and fiscal assumptions from the OBR and HM Treasury.</p>
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