Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has plans to ensure that inflation does not rise in the event that the UK leaves the EU without a deal.

Maintaining price stability is the primary objective, set out in law, of the independent Monetary Policy Committee. As such, the Government does not comment on the conduct of monetary policy. This objective is defined as a symmetric inflation target of 2%, as measured by the twelve month increase in the Consumer Prices Index. Subject to this, its secondary objective is to support the economic policy of the Government, including its objectives for growth and employment.

At their February meeting, the MPC reemphasised that “the monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction”, adding that “the Committee will always act to achieve the 2% inflation target.”