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Financial Markets and Monetary Policy
05 July 2023
Lead MP
Robert Syms
Debate Type
Adjournment Debate
Tags
Economy
Other Contributors: 1
At a Glance
Robert Syms raised concerns about financial markets and monetary policy in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
It is a pleasure to be here. Robert Syms raised concerns about the impact of money printing during lockdowns, leading to inflation and economic instability. He highlighted that while some economists predict a recession due to reduced consumer spending, others argue that significant savings built up could power the economy. He warned that interest rates may have to rise further causing substantial lag effects on mortgage holders, potentially overburdening them. Syms advocated for patience from the Bank of England in raising interest rates to avoid economic downturns and emphasised the need for careful management during quantitative easing reversal processes. Concerns were raised about money supply levels dropping too sharply which could impact credit availability and lead to future economic dislocation.
Jim Shannon
DUP
Strangford
The hon. Member for Strangford briefly contributed, although his specific points are not detailed in the transcript.
Government Response
Andrew Griffith congratulated Robert Syms on securing the debate and acknowledged its importance. He emphasised that the Monetary Policy Committee has operational independence, including setting interest rates and conducting quantitative tightening. Griffith noted strong underlying demand for UK debt despite international financial market pressures. He assured co-ordination between the Debt Management Office and the Bank of England during quantitative easing reversal processes to avoid simultaneous selling by both entities. The Minister acknowledged Syms' points regarding money supply measures and promised to take them back to Treasury colleagues. He reiterated the Government’s commitment to tackling inflation through tough fiscal choices aligned with monetary policy while maintaining dialogue between the Bank and the Treasury.
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Assessment & feedback
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About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.