Monetary Policy Committee

The European Central Bank is taking part in a hearing of the European Parliament's Committee on Economic and Monetary Affairs, where lawmakers question central bank officials on monetary policy, inflation and eurozone financial stability. Such hearings are a regular part of the ECB's accountability to the Parliament, giving MEPs a chance to scrutinise decisions affecting the euro area economy.

A Bank of England policymaker, identified as Taylor, said inflation is contained and urged caution over further interest rate increases. The comments suggest a more dovish stance within the Bank's rate-setting committee, with markets and borrowers watching closely for signals on the future path of UK monetary policy.

Economists and policymakers are revisiting how the Federal Reserve should respond to supply shocks, weighing whether rate policy can counter inflation driven by disruptions like energy prices and supply chains rather than demand. The discussion also includes an inside account of how decisions are made at Federal Open Market Committee meetings, drawing attention to the Fed's internal deliberations and the balance between fighting inflation and protecting growth.

Alan Taylor, an external member of the Bank of England's Monetary Policy Committee, has delivered a speech titled 'Searching for signposts'. Published by the Bank of England, the speech discusses how policymakers read economic indicators when setting interest rates. Such speeches are closely watched by markets for hints on the direction of UK monetary policy.

Catherine Mann, an external member of the Bank of England's Monetary Policy Committee, said at a McKinsey panel that persistent above-target inflation poses a problem for central bank credibility. Her remarks underline concern among policymakers that failing to return inflation to target quickly could erode public trust in monetary policy.