Interest rates are set by the Bank’s Monetary Policy Committee. The MPC sets an interest rate it judges will enable the inflation target to be met.
The Bank’s Monetary Policy Committee (MPC) is made up of nine members – the Governor, the two Deputy Governors, the Bank’s Chief Economist, the Executive Director for Markets and four external members appointed directly by the Chancellor. The appointment of external members is designed to ensure that the MPC benefits from thinking and expertise in addition to that gained inside the Bank of England.
Members serve fixed terms after which they may be replaced or
re-appointed. The current members are:
Mervyn King, Governor
Charles Bean, Deputy Governor
Paul Tucker, Deputy Governor
Kate Barker
Tim Besley
Prof. David Blanchflower
Spencer Dale
Paul Fisher
Andrew Sentance
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