THE BRITISH POUND (CABLE)

Monetary Policy

The conduct of British Monetary Policy by the Bank of England is primarily geared on maintaining price stability, as defined by the Government's inflation target, with the end goal of achieving sustainable economic growth and employment. Currently this inflation target has been set to an asymmetric 2.5% annual growth in core Retail Prices.

Serving as the highest body responsible for monetary policy is the bank's Monetary Policy Committee which, by influencing the cost of money, dictates the thrust of monetary policy under normal conditions. However, due to the structural restrictions of the British Government, the Monetary Policy Council may at times, when national interest demands, be dictated upon by the Government on the levels of interest rate for a limited period.



Key Personalities and Institutions

: Bank of England - Monetary Policy Committee
: Eddy George, Central Bank Governor
: Mervyn King, Deputy Governor
: David Clementi, Deputy Governor
: Ian Plenderleith, Executive Director
: John Vickers, Executive Director
: Stephen Nickell, Outside Expert
: Christopher Allsopp, Outside Expert
: Kate Barker, Outside Expert
: Sushil Wadhwani, Outside Expert

Interest Rates
Like most monetary authorities the primary tool that the Bank of England uses in effecting monetary policy is its short-term interest rate. The key short-term rate for the UK is the Bank of England's repo rate which the Monetary Policy Committee sets every first week of the month under normal circumstances.



Key Events and Reports to Watch

The most important economic data items released in the UK are :
: Average earnings
: GDP
: Housing Prices
: Industrial Production
: Money Supply M4
: Producer Price Index
: CIPS Surveys
: RPI-X
: Retail Sales
: Labor Market reports