§ Mr. RedwoodTo ask the Chancellor of the Exchequer if the Treasury(a) told the Bank of England about the co-ordinated interest rate cuts following the events of September 11 and (b) discussed British response with the Bank. [9772]
§ Ruth Kelly[holding answer 23 October 2001]: As permitted by the Bank of England Act 1998 the Governor of the Bank, as chair of the Monetary Policy Committee (MPC), convened a special MPC meeting on 18 September. As with all MPC meetings the Treasury representative was invited to attend.
§ Mr. RedwoodTo ask the Chancellor of the Exchequer if the Treasury has recently varied the instructions to the Bank of England to allow reductions in interest rates to stimulate economic activity. [9773]
§ Ruth Kelly[holding answer 23 October 2001]: The Government set, and take responsibility for, the objectives of monetary policy as laid out in the remit given by the Chancellor of the Exchequer to the Governor of the Bank of England, under the Bank of England Act 1998. The inflation target and the remit are renewed annually (last time being in March 2001), as required by the Act. The Government have issued no instructions other than the remit.