The Monetary Policy Committee is the Bank of England group that sets the UK Bank Rate to keep inflation close to its 2% target.
Last reviewed: 1 July 2026
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REGULATIONS |
The Monetary Policy Committee (MPC) is the Bank of England group responsible for setting the UK Bank Rate. Its objective is to keep inflation close to the government's 2% target.
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KEY FACTS
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How the MPC's decision affects everyday borrowing
When the MPC raises or lowers the Bank Rate, this generally feeds through to the rates lenders charge on new mortgages and offer on savings accounts, though not always immediately or by the same amount. Lenders set their own rates, but the Bank Rate is a major input into that decision.
Why the MPC targets 2% inflation specifically
The 2% target is set by the UK government, and the MPC's task is to use interest rates and other tools to keep inflation as close to that figure as possible. If inflation moves significantly away from target, the MPC is expected to explain why and how it plans to bring it back.
Composition of the Monetary Policy Committee (9 voting members)
| Role | Number | Detail |
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| Governor | 1 | Chairs the Committee |
| Deputy Governors | 3 | Monetary Policy, Financial Stability, Markets and Banking |
| Chief Economist | 1 | Bank of England's Chief Economist |
| External members | 4 | Appointed directly by the Chancellor |
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Worked Example: How often the rate can change The MPC meets eight times a year, roughly every six weeks. At each meeting, all nine members vote, and the Bank Rate can change, stay the same, or move by different amounts depending on the vote. A representative from HM Treasury also attends but does not vote. |
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This article is general information, not financial or legal advice. Rules and limits can change: always check the current position with the regulator or scheme concerned before relying on any figure here. |
How often does the Bank Rate change?
The MPC reviews the Bank Rate at each of its scheduled meetings, roughly eight times a year, though it does not necessarily change the rate at every meeting.
Who is on the Monetary Policy Committee?
The MPC is made up of the Bank of England's Governor, several deputy governors, the Bank's chief economist, and external members appointed by the government.
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Related Guides |
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