Open letters between HM Treasury and Bank of England, May 2016

CPI inflation was 0.5% in March 2016, prompting an open letter from the Governor of the Bank of England to the Chancellor on 12 May 2016. The Chancellor replied to the Governor on 12 May 2016.



The remit for the Monetary Policy Committee (MPC) requires an exchange of open letters between the Governor of the Bank of England and the Chancellor of the Exchequer if inflation moves away from the target by 1 percentage point in either direction. A further letter should be sent after 3 months if inflation remains more than 1 percentage point above or below the target.

As set out in the remit, the open letters are published alongside the first routine publication after the meeting of the MPC that follows the release of the CPI data.

Published 12 May 2016