Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the correspondence entitled Monetary Policy Remit, published on 15 November 2024, what assessment she has made of the effectiveness of the Monetary Policy Committee’s progress in (a) delivering long-term growth and (b) accelerating the transition to a (i) climate resilient, (ii) nature positive and (ii) net zero economy.

Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England, so the government does not comment on the conduct or effectiveness of monetary policy.

The MPC’s primary objective is to achieve price stability. Subject to that, its secondary objective is to support the economic policy of the government, which is “to restore broad-based and resilient growth built on strong and secure foundations”. As the Chancellor said in a letter to the Governor on 18 September 2025, low and stable inflation is essential for long-term economic growth and sustained increases in living standards.

Delivering on the climate and nature is one part of the government’s broader economic strategy and it is up to the MPC to judge how it sets monetary policy in line with its remit. Consistent with its remit, the MPC sets monetary policy in a way that helps to sustain growth and employment.

The MPC has the government’s full support as it acts to return inflation to the 2% target sustainably.