Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential effect on the economy of a raising of interest rates to 3 per cent.

Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England and this includes decisions on Bank Rate and the assets held in the Asset Purchase Facility (APF). The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, and essential for the effective delivery of monetary policy, so the Government does not comment on the conduct or effectiveness of monetary policy, including the effect of a change in Bank Rate.

The Government continually monitors a range of economic indicators and developments to consider the impact of these on businesses and households.