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USMAN NASEEM
02341785
FINANCIAL SERVICES
FINANCE AND MONETRY SYSTEM
INTEREST AND INFLATION
ASSIGNMENT

Interest Rates have been set by the bank of England ever since it was granted operational independence in May 1997. These interest rates represent the rate of interest paid on money borrowed and also the rate of return on money saved. The task of setting the rates is given to the MPC ( Monetary Policy Committee), over the years these rates have differed based duly on certain requirements and factors set by the government. For example, it is the governments desire to maintain a stable economic system, price stability, a low inflation rate and a stable value of its money. The current target by the UK Government for Inflation is 2%. In the following brief I will discuss and propose how I would seek to set or influence interest rates in the economy to achieve Inflation at or around our target of 2%.

As mentioned above the decision taken by the Bank of England in regards to......

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Approximate Word Count: 1774
Approximate Pages: 8 (250 words per double-spaced page)

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