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Monetary Policy Statement

The Monetary Policy Statement sets out how the Monetary Policy Committee will achieve its objectives.

The purpose of the Monetary Policy Statement

Each Monetary Policy Statement must set out:

  • the approach the Monetary Policy Committee (MPC) is taking to achieve its operational objectives defined in the remit

  • the MPC’s reasoning for adopting that approach
  • the transparency and accountability requirements of the MPC's charter:
    • explaining how the MPC has sought to meet the requirements of Section 2(2) of the remit
    • if inflation outcomes (and/or expected outcomes) are outside of the target range, explaining the reason for this, the timeframe over which inflation is expected to return to the target midpoint and the reasons for that timeframe.

Read about the Monetary Policy Committee

How we prepare the Monetary Policy Statement

During the development of each MPS, our staff present initial forecasts that the Monetary Policy Committee (MPC) then discuss. The MPC has direct access to experts when forming its views.

Our staff amend the final forecasts following MPC's suggestions. The final monetary policy decision is based on the forecasts that have incorporated the MPC’s judgement. The MPC ultimately has ownership over the published forecasts.