Andrew Rosindell – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Andrew Rosindell on 2016-01-06.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the (a) potential effect on the UK economy of the decision by the US Federal Reserve to raise US interest rates and (b) potential effect of this decision on interest rates in the UK.

Harriett Baldwin

Higher US interest rates are a sign of confidence in the US economy, whose strong recovery has supported demand as the world’s largest economy and UK’s closest economic and financial partner. The UK’s monetary policy framework, set out in the Bank of England Act 1998, gives operational responsibility for monetary policy to the independent Monetary Policy Committee. Decisions on setting Bank Rate are for the judgement of the MPC.