Bishop of St Albans asks about monetary policy, car finance schemes

On 30th December the Bishop of St Albans received written answers to questions on monetary policy, and care finance schemes:

The Lord Bishop of St Albans: To ask Her Majesty’s Government, further to the Written Answer by Lord Agnew of Oulton on 3 December (HL10488) and the exchange of letters between the Bank of England and HM Treasury on the Asset Purchase Facility on 29 January 2009, whether the Monetary Policy Committee still requires the consent of HM Treasury to engage in quantitative easing through the Asset Purchase Facility. [HL11242]

The Lord Bishop of St Albans: To ask Her Majesty’s Government, further to the Written Answer by Lord Agnew of Oulton on 3 December (HL10488) and the exchange of letters between the Bank of England and HM Treasury on the Asset Purchase Facility on 29 January 2009, what assessment they have made of the implications of the confirmation in these letters that the financing of the Asset Purchase Facility by central bank money would require HM Treasury consent for the question of whether it is appropriate for the Government to comment on the effectiveness of quantitative easing; and what assessment they have made of the effects of quantitative easing on the increase in house prices compared to increases in wages. [HL11243]

Lord Agnew of Oulton: The Bank of England’s Asset Purchase Facility is indemnified by HM Treasury. Due to this indemnity any decision to increase the limit of purchases to be financed through the issuance of central bank reserves requires Chancellor authorisation. However, the judgement of what size and composition of the Asset Purchase Facility is warranted is for the independent Monetary Policy Committee. The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, and the Government does not comment on the conduct and effectiveness of monetary policy.


The Lord Bishop of St Albans: To ask Her Majesty’s Government, further to the report by the Financial Conduct Authority (FCA) Our work on motor finance—final findings, published on 1 March 2019, and the decision by the FCA announced on 28 July to ban discretionary commission models of car finance, what assessment they have made of whether personal contract purchase finance has been mis-sold; and what plans they have to introduce a compensation scheme for any consumers affected. [HL11374]

Lord Agnew of Oulton: This question has been passed on to the Financial Conduct Authority (FCA). The FCA will reply directly to the Lord Bishop by letter. A copy of the letter will be placed in the Library of the House.