Overview

This bill proposes a minor amendment to the Bank of England Act 1998, altering the wording of the Bank's monetary policy objectives. The change removes a conditional phrase, potentially giving the Bank more flexibility in its approach to inflation control.

Description

The Bank of England (Amendment) Bill amends Section 11(b) of the Bank of England Act 1998. Specifically, it removes the phrase "subject to that," from the section outlining the Bank's objectives regarding monetary policy. This seemingly small change could have significant implications for how the Bank operates. The removal of this condition suggests a greater degree of autonomy for the Bank in achieving its primary monetary policy goals, which could include inflation targeting.

Government Spending

The bill itself does not directly specify any changes to government spending. The amendment's impact on government spending would be indirect and depend on the Bank's subsequent actions in response to the altered objectives. No figures are provided in the bill text.

Groups Affected

• The Bank of England: The bill directly affects the Bank by altering its operational mandate and potentially increasing its flexibility in monetary policy decisions.
• Businesses: Changes in interest rates and inflation, influenced by the Bank's actions, will impact businesses' borrowing costs, investment decisions and overall profitability.
• Consumers: Interest rate changes will affect mortgage payments, loan repayments, and savings interest, potentially impacting consumer spending and investment.
• Government: While the bill doesn't directly impact spending, the government's economic policy is closely tied to the Bank's monetary policy actions, making them indirectly affected by any alteration.

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