Overview

The Bank of England (Amendment) Bill aims to amend the Bank of England Act 1998 by removing a clause that subjected the Bank's monetary policy objectives to certain conditions. This alteration gives the Bank greater flexibility in achieving its primary goal of price stability.

Description

This bill modifies the Bank of England Act 1998. Specifically, it removes the phrase "subject to that" from section 11(b). This section outlines the Bank of England's objectives concerning monetary policy. Removing this phrase grants the Bank more freedom and flexibility in its approach to achieving price stability, its primary objective. The bill also includes standard clauses regarding commencement (the Treasury will set the effective date), extent (applying to all of the UK, including Northern Ireland), and short title.

Government Spending

The bill itself does not directly allocate or impact government spending. The potential indirect effects on government spending are complex and depend on the Bank of England's subsequent actions in response to the amended legislation. There are no figures provided regarding specific financial impacts within the bill itself.

Groups Affected

The primary group affected is the Bank of England, gaining more autonomy in setting monetary policy. Other affected groups include businesses and individuals, whose economic situations may be influenced by changes in interest rates and inflation resulting from the Bank's revised operational flexibility. The impact on these groups is difficult to predict and could be either positive or negative.

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