To ask the Chancellor of the Exchequer what assessment he has made of the likely effects on (a) the rate of inflation, (b) the value of sterling and (c) the level of bank lending of implementation of a policy of quantitative easing. (261382)

The Chancellor has authorised the Monetary Policy Committee (MPC) to use the Asset Purchase Facility for monetary policy purposes. The objectives of the Government's monetary policy framework remain unchanged. The Monetary Policy Committees operational target set by the Government remains at 2 per cent., as measured by the 12-month change in the Consumer Prices Index.