Inflation

HC Deb 30 July 1998 vol 317 c413W

Mr. Boswell

To ask the Chancellor of the Exchequer by what date he plans to reduce inflation to its target level. [53433]

Ms Hewitt

Under the monetary policy framework introduced in May 1997, the Government's role is to set the inflation target. The Bank of England is responsible for taking operational decisions to meet the inflation target.

The inflation target is 2½ per cent. at all times. However, monetary policy affects inflation with a lag and the actions taken by the MPC will not yet have had their full effect on inflation.