bain_y_howells__monetary_economics__policy_and_its_theoretical_basis

348 MONETARY ECONOMICS
Table 11.2: Bank of England repo rate and RPIX 1997-2001
1997
1998
1999
2000
2001
11.5 Summary
Date Repo % RPIX % p.a.
6 May
6 Jun
10 Jul
7 Aug
6 Nov
4 Jun
8 Oct
5 Nov
10 Dec
7 Jan
4 Feb
8 Apr
10 Jun
8 Sep
4 Nov
13 Jan
10 Feb
8 Feb
5 Apr
10 May
2 Aug
18 Sep
4 Oct
8 Nov
6.25
6.50
6.75
7.00
7.25
7.50
7.25
6.75
6.25
6.00
5.50
5.25
5.00
5.25
5.50
5.75
6.00
5.75
5.50
5.25
5.00
4.75
4.50
4.00
Sources: www.bankofengland.co.uk/mfsd and Inflation Reports (various)
In this chapter we have seen that monetary policy in the UK since 1945 has
passed through a number of phases. Until 1971, policy followed a broadly
Keynesian line. The objective was to minimise unemployment subject to a
balance of payments constraint which occasionally caused a weakness in the
2.5
2.7
2.7
2.8
2.9
2.8
2.5
2.5
2.6
2.5
2.5
2.7
2.2
2.1
2.1
2.1
2.2
1.9
2
2.1
2.6
2.3
2.2
2.2