VRS

Factors that the MPC use to Determine Interest Rates

-        Current level of inflation

-        Expectation of level of inflation on the future

-        Exchange Rate

-        Retail sale, possibly forecasts too

-        Unemployment

-        Economic growth

-        Money supply, bank lending

-        Global economic picture

-        VAT impact

-        Microeconomic supply and demand factors, like oil and food prices and wages.

-        Exports and imports

-        Investment, factory gate prices

-        Manufacturing, manufacturing output

-        Savings ratio

-        House prices

-        Consumer confidence and business confidence