BoE to face inquiry on monetary policy actions since 2008

Report by Treasury Committee

The Treasury Committee has launched an inquiry into the effectiveness and impact of monetary policy following the 2008 financial crisis, stating it requires "careful examination".

This will cover areas such as the effectiveness of monetary policy in meeting the inflation target, the unintended consquences of monetary policy and its prospects for the future. It will also assess whether low rates encourage more or less saving, the impact since the US election in November and whether monetary policy is "out of ammunition". Interest rates were cut to 0.5% by the Bank of England in 2009 and cut further by governor Mark Carney to 0.25% this summer following the EU referendum. The Bank of England has also utilised quantitative easing and currently has an asset purc...