tailieunhanh - Who sets our interest rates - Bank of England Inside the Monetary Policy Committee

As laid down by the Basel Committee on Banking Supervision, a key require- ment for the proper management of a bank’s interest rate risk is the defi nition of the relevant principles and processes based on proportionality. More specifi cally, it is important to clearly defi ne responsibilities and accountability in taking risk management decisions as well as what kind of instruments are eligible. The purposes or goals for which eligible instruments may be used need to be specifi ed as well. Qualitative points of this nature should be supple- mented with quantitative parameters determining the amount of interest rate r. | The Monetary Policy Committee This booklet outlines the work of the Monetary Policy Committee which sets our interest rates. Written by Monetary Policy Committee member Richard Lambert it also answers some simple questions about the procedures the Committee follows how it reports back and its record to .