Okuzeka
Economics vocabulary · Central Banks and Interest Rates

Monetary policy committee

Meaning in economics, with examples

nounCommon term

In economics, monetary policy committee means: The group of officials inside a central bank who meet regularly to decide on interest rates and other monetary policy tools.

In Turkish: Para Politikası Kurulu, PPK

How it is used

Often shortened to MPC. The CBRT and the Bank of England both have a Monetary Policy Committee. The US equivalent is the FOMC, and at the ECB it is the Governing Council. The committee meets, votes and issues a statement.

Example sentences

  1. The monetary policy committee voted to raise the policy rate by 50 basis points.

  2. A summary of the monetary policy committee meeting will be published next week.

Common collocations

  • MPC meeting
  • MPC decision
  • MPC statement
  • MPC minutes
  • members of the MPC
  • central bankThe national institution that issues a country's currency, sets the main interest rate and works to keep prices and the financial system stable.
  • policy rateThe main interest rate set by a central bank, which guides the rates that banks charge each other, businesses and households.
  • monetary policyThe actions a central bank takes to influence interest rates, the money supply and credit in order to control inflation and support the economy.
  • hold ratesTo leave interest rates unchanged at a central bank meeting, neither raising nor cutting them.
  • forward guidanceCommunication by a central bank about the likely future path of interest rates, used to shape what markets and the public expect.

More terms: Central Banks and Interest Rates

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