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3 Cards in this Set
- Front
- Back
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What is the role of the Monetary Policy Committee(MPC) |
The primary focus is to ensure inflation is kept within the government set range. They do this by setting the base rate. |
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What factors do the MPC gauge that can influence inflation? |
Exchange rates Economic growth Consumer borrowing Wage inflation Changes to government spending & Tax |
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When changing the base rate what impact can this have on the sustainability of growth? |
1) short term - eg credit card spending when consumers are already stretched
2) long term - eg businesses altering there investment and expansion plans |
