I sent yesterday evening to the Governor of the Bank of England a letter setting out the updated remit for the Monetary Policy Committee (MPC).
I have reconfirmed the inflation target as 2% as measured by the 12-month increase in the consumer prices index (CPI).
I have also confirmed that the economic policy objective of the Government is to achieve strong, sustainable and balanced growth that is more evenly shared across the country and between industries.
In the event of CPI inflation moving away from the target by more than 1 percentage point in either direction, the updated remit ensures that the inflation open letter will be sent alongside the first routine publication of the MPC after the meeting that follows the publication of CPI inflation.
In conjunction with the Treasury’s responsibilities under the Bank of England Act, copies of the updated remit for the Monetary Policy Committee have been laid before Parliament.