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Monetary Policy Committee
(Redirected from MPC)The Monetary Policy Committee or MPC as it is commonly known is part of the Bank of England and is responsible for setting UK interest rates also known as the base rate.
They MPC meets once a month and discusses the UK economy looking at economic reports and future predictions to decide on whether to rise, lower or keep the base rate on hold.
The MPC has a CPI inflation target set by the Treasury and it is the MPC's job to try and keep inflation within that range by tweaking interest rates. This job is a lot harder than it sounds due to the far reaching effects of changing interest rate. It affects the whole of the economy and making one decision either way can have far reaching implications. The housing market is a prime example of this.