If inflation moves away from the target by more than 1 percentage point in either direction, the Governor is required to send an open letter to the Chancellor explaining why inflation has moved away from target and what action the Bank is taking to bring inflation back to target. (full story)

On 14 December 2022, the Office for National Statistics (ONS) published data showing that twelve-month inflation in the Consumer Prices Index (CPI) was 10.7% in November. As required by the Monetary Policy Committee’s (MPC) remit when inflation moves away from the 2% target by more than 1 percentage point in either direction, this letter – which will be published alongside the minutes of the Committee’s December meeting – addresses the following: ? the reasons why inflation has moved away from the target, and the outlook for inflation; ? the policy action that the MPC is taking in response; ? the horizon over which ... (full story)

Thank you for your letter of 15 December on behalf of the Monetary Policy Committee (MPC) regarding November’s Consumer Price Index (CPI) figure. The twelve-month measure of CPI inflation was 10.7% in November, which triggered an exchange of open letters under the terms of the MPC remit. This is the sixth consecutive exchange of letters regarding abovetarget inflation, but my first as Chancellor. The government’s commitment to the 2% CPI inflation target, and the independence of the Bank remains absolute. As I set out in my letter updating the remit of the MPC at Autumn Statement, in order to provide stability, this ... (full story)