HC Deb 17 November 1998 vol 319 cc551-2W
Dr. Kumar

To ask the Chancellor of the Exchequer (1) what plans he has to measure the effectiveness of the Monetary Policy Committee (i) annually and (ii) over four-year periods; [59528]

(2) if he will make a statement on the effectiveness of the Monetary Policy Committee to date. [59583]

M0s Hewitt

The task of the Monetary Policy Committee is to set short-term interest rates to meet the Government's inflation target. The success of the new monetary framework is demonstrated by the fact that

Ms Hewitt

In accordance with Article 29 of the ESCB Statute, the formula for the subscription of capital to the ECB is based on Member States' population and GDP. The table gives details of the weightings assigned to national central banks.

The national central banks of participating Member States will be required to pay up the full amount of their subscribed capital in the ECB. In accordance with Article 48 of the Statute of the ESCB, the ECB General Council decided in September that the national central banks of non-participating Member States should pay up 5 per cent. of their shares in the subscribed capital of the ECB. This payment will be made by offset against the proceeds of the liquidation of the EMI.

inflation is at its target, long-term interest rates are currently at their lowest level for over 35 years and inflation expectations have fallen.