Dear Rishi On 20 May 2020, the Office for National Statistics (ONS) published data showing that twelve-month inflation on the Consumer Prices Index (CPI) was 0.8% in April. As required by the remit for the Bank of England’s Monetary Policy Committee (MPC) when inflation moves away from the 2% target by more than 1 percentage point in either direction, this letter – which will be published alongside the minutes of the Committee’s June meeting – addresses the following: ï‚· the reasons why inflation has moved away from the target, and the outlook for inflation; ï‚· the policy action that the MPC is taking in response; ï‚· t ... (full story)

Thank you for your letter of 18 June on behalf of the Monetary Policy Committee (MPC) regarding April’s Consumer Prices Index (CPI) inflation figure. The twelve-month measure of CPI inflation was 0.8% in April, which triggered an exchange of open letters under the terms of the MPC remit. CPI inflation fell further to 0.5% in May. As the MPC’s latest Monetary Policy Report demonstrates, the UK, along with the rest of the world, is facing significant economic disruption as a result of the Covid-19 pandemic. I would like to thank the MPC for their swift response in these unprecedented times. I agree with your assessment ... (full story)