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The interaction of the FPC and the MPC

Author

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  • Shakir, Tamarah

    (Bank of England)

  • Tong, Matthew

    (Bank of England)

Abstract

The Bank’s Financial Policy Committee (FPC) and Monetary Policy Committee (MPC) are separate committees, each with their own primary objectives, but with a common secondary objective. In addition, the policy actions of one committee can affect economic and financial variables of interest — and hence the policy stance — of the other. There are clear benefits from having two separate committees. But there is also considerable scope for, and benefits from, effective information sharing and dialogue between the FPC and MPC, and a shared understanding of each committee’s approach to policymaking.

Suggested Citation

  • Shakir, Tamarah & Tong, Matthew, 2014. "The interaction of the FPC and the MPC," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 396-408.
    • Handle: RePEc:boe:qbullt:0158
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    2. England, David & Hebden, Andrew & Henderson, Tom & Pattie, Tom, 2015. "The Agencies and 'One Bank'," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 47-55.
    3. Anderson, Gareth & Bunn, Philip & Pugh, Alice & Uluc, Arzu, 2014. "The potential impact of higher interest rates on the household sector: evidence from the 2014 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 419-433.
    4. Lukáš Pfeifer & Zdeněk Pikhart, 2015. "Vliv měnových podmínek na jednotlivé kategorie cen v České Republice v kontextu měnové a makroobezřetnostní politiky [The Effect of Monetary Conditions on Individual Categories of Prices in the Cze," Politická ekonomie, Prague University of Economics and Business, vol. 2015(8), pages 948-966.
    5. Andrew W. Mullineux & Jean-Bernard Chatelain & Alexis Direr, 2015. "Quelle sera la nouvelle norme de politiques monétaire et macroprudentielle ?," Revue française d'économie, Presses de Sciences-Po, vol. 0(4), pages 85-100.

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