Editing Bank of England (section)

====Stable prices====
Stable prices are maintained by seeking to ensure that price increases meet the Government's inflation target. The bank aims to meet this target by adjusting the base [[interest rate]] (known as the [[bank rate]]), which is decided by the bank's [[Monetary Policy Committee (United Kingdom)|Monetary Policy Committee (MPC)]]. (The MPC has devolved responsibility for managing [[monetary policy]]; [[HM Treasury]] has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances", but Parliament must endorse such orders within 28 days.)<ref>{{Cite web |title=Act of Parliament gives devolved responsibility to the MPC with reserve powers for the Treasury |url=http://www.opsi.gov.uk/acts/acts1998/ukpga_19980011_en_3#pt2-pb4-l1g19 |url-status=live |archive-url=https://web.archive.org/web/20100314153711/http://www.opsi.gov.uk/Acts/acts1998/ukpga_19980011_en_3#pt2-pb4-l1g19 |archive-date=14 March 2010 |access-date=10 May 2010 |publisher=Opsi.gov.uk}}</ref>

As of 2024 the inflation target is 2%; if this target is missed the Governor is required to write an open letter to the [[Chancellor of the Exchequer]] explaining the situation and proposing remedies.<ref>{{cite web |title=Inflation and the 2% target |url=https://www.bankofengland.co.uk/monetary-policy/inflation |website=Bank of England |date=14 December 2023 |access-date=6 January 2024}}</ref> Other than setting the base interest rate, the main tool at the bank's disposal in this regard is [[quantitative easing]].<ref>{{cite web |title=Monetary policy |url=https://www.bankofengland.co.uk/monetary-policy |website=Bank of England |date=14 December 2023 |access-date=6 January 2024}}</ref>