Monetary Policy Committee (MPC) | Financial Glossary | Stable Payments

The Monetary Policy Committee (MPC) is a committee within the Bank of England responsible for setting the UK’s official interest rate (the Base Rate) and directing monetary policy to achieve the government’s inflation target, currently 2%.

The MPC meets around eight times per year to review economic data such as inflation, employment, growth, and global market trends before voting on whether to raise, lower, or maintain the base rate.

It consists of nine members — including the Governor of the Bank of England, three Deputy Governors, the Bank’s Chief Economist, and four external experts appointed by the Chancellor.

Example:

If inflation is running at 4%, well above the 2% target, the MPC may vote to increase the base rate to cool demand and bring prices down.

Used in:

UK monetary policy, economic forecasting, and financial market analysis.