Monetary Policy Committee (MPC)

The Monetary Policy Committee (MPC) is a group of nine financial experts, attached to the Bank of England.

The MPC's most high-profile job is to decide what the UK's base rate of interest (the underlying cost of borrowing) should be. It typically meets on the first Wednesday and Thursday of each month to decide what interest rates should be until the next meeting – but emergency meetings can be called.

The MPC is made up of the governor of the Bank of England, two deputy governors, two members of the Bank with responsibility for monetary policy and market operations, and four outside members with relevant expertise who are appointed by the chancellor. At the end of each meeting MPC members vote on what interest rates should be, with the deciding vote going to the governor.

MPC members decide whether to raise or lower interest rates with the objective of keeping inflation (as measured by the Consumer Price Index) at its target rate (currently two per cent).