When it comes to how the BoE makes interest rates decisions and sets interest rates, it is essential to know the role of the Monetary Policy Committee (MPC). Members of the MPC meet eight times a year after a briefing by staff from the central bank.
Chancellor of the Exchequer Jeremy Hunt came under severe pressure after his autumn budget statement, will his tax rises impact short-term interest rates? There is growing concern that delaying the worst tax rises for another two years will not help the Bank of England in its quest to control inflation. So, could there be more short-term pain before the tax increases have an impact?