Lord Birt – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Birt on 2016-10-10.

To ask Her Majesty’s Government what assessment they have made of whether the drop in the value of sterling in recent months reflects the markets’ view of the likely future health of the UK economy.

Lord Young of Cookham

The UK has an inflation target, not an exchange rate target, and Her Majesty’s Government does not express a view on the level of exchange rates. Instead, the exchange rate is allowed to adjust flexibly in response to economic conditions and movements in sterling are determined by market forces.

This framework means we do not need to introduce exchange rate controls.