Off the wire
• 1st LD: Newly-formed Croatian government pledges to focus on economic growth  • UN food agency aids people affected by violence in CAR  • Oil prices jump on big U.S. crude stock drawdown  • Roundup: Price of children's five-in-one vaccine halved to below 1 U.S. dollar a dose, UNICEF says  • Over 800 firearms surrendered since Namibia declares amnesty early Sept.  • Slovenia reiterates stance on unity among EU members over Brexit  • 1st LD: Rebels start evacuating eastern part of Aleppo city  • Greek debt relief will not lead to fourth bailout: Greek FinMin  • Iran says only Iraqis should partake in Mosul operation  • Oil prices jump on big U.S. crude stock drawdown  
You are here: 　 Home

Bank of England's Monetary Policy Committee to retain independence: Chancellor

Xinhua, October 20, 2016 Adjust font size:

Britain's Chancellor of the Exchequer Philip Hammond confirmed Wednesday that the Bank of England's Monetary Policy Committee will retain its independence.

His assurance during a meeting of the House of Commons Treasury Committee that the monetary committee will remain responsible for monetary policy had an immediate impact on the City of London and sterling.

British currency has recorded one of its best performances against the Euro and U.S. Dollar since July, with the pound trading at over 1.23 U.S. dollars during Wednesday, and the FTSE closing at over 7,000.

Questioned at the Treasury Committee by politicians, Hammond said : "There will be no change in monetary policy. Monetary policy is independently determined, that will continue to be the case."

The Bank of England's Monetary Policy Committee sets Britain's base interest rate, currently set at 0.25 percent.

MPs on the select committee also questioned the chancellor about the impact of Brexit on the British economy.

Hammond agreed that uncertainty is the big challenge in the next phase of the Brexit process, adding: "It's a challenge to our economy - there will be a period inevitably of uncertainty until we know the outcome of the negotiations."

Concern has been expressed about the possible impact of Brexit on the City of London and the financial sector in Britain.

Hammond said: "The reality is that financial services remains our single largest sector; it is responsible for a very large number of jobs straight across the United Kingdom, it's not London-based industry."

Earlier in the day data from the Office for National Statistics showed Britain's unemployment rate in the months after the June 23 EU referendum vote remained unchanged at 4.9 percent. ONS also revealed that almost 32 million people in Britain were currently in work, half a million more than a year earlier.

Meanwhile Prime Minister Theresa May's Conservative government Wednesday saws its lead over the main opposition Labor party grow to 18 points, its highest level since October 2009.

The Ipsos Mori poll shows the gap is the biggest advantage recorded for the Conservatives while in power since 1987, shortly after the then Prime Minister Margaret Thatcher's landslide victory.

The poll shows that if the current Conservative lead of 47 against Labor's 29, was repeated in a general election, it would deliver a majority of over 100 for Theresa May.

Gideon Skinner, head of Political Research at Ipsos Mori, said: "Labor so far is not taking advantage, as the Conservatives' honeymoon continues - for the moment at least."

Labor had hoped that Jeremy Corbyn's re-election as leader, coupled with the appointment of a full shadow cabinet after the recent fall-out with his MPs would bring stability to the opposition benches and narrow the margin.

The new poll puts the traditional third party in Britain, the Liberal Democrats in third place on seven points, with the troubled UKIP party in fourth on six points. Enditem