§ Mr. MitchellTo ask the Chancellor of the Exchequer what assessment he has made of the benefits and consequences of including asset prices in the Bank of England's inflation target; and if he will make a statement. [124348]
§ Miss Melanie JohnsonThe Bank of England Monetary Policy Committee (MPC) is required to meet the Government's clear inflation target of 2.5 per cent. RPIX inflation. Dual target systems have in the past led to macroeconomic instability for example, in the late 1980s and early 1990s. The MPC takes into account all relevant information, including asset prices, in making its judgment on interest rates to achieve the Government's inflation target.