Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his Department's policies of comments by Lord King of Lothbury on the potential impact of the Bank of England's net zero policy on the level of inflation.

The primary objective of the Monetary Policy Committee (MPC) is to maintain price stability. Its secondary objective, to support the economic policy of the Government, is subject to maintaining price stability.

Price stability is an essential pre-requisite for economic growth, and will remain the MPC’s primary objective when the Chancellor updates its remit alongside the Autumn Statement. It is for the MPC to judge how it sets monetary policy in line with its remit, and the MPC has our full support as it acts to return inflation to the 2% target.