Editing Chancellor of the Exchequer (section)

===Monetary policy===
Although the [[Bank of England]] is responsible for setting interest rates, the chancellor also plays an important part in the monetary policy structure. They set the inflation target which the Bank must set interest rates to meet. Under the [[Bank of England Act 1998]] the chancellor has the power of appointment of four out of nine members of the Bank's [[Monetary Policy Committee (United Kingdom)|Monetary Policy Committee]] – the so-called 'external' members. They also have a high level of influence over the appointment of the Bank's Governor and Deputy Governors, and has the right of consultation over the appointment of the two remaining MPC members from within the Bank.<ref>{{Cite web |date=6 May 1997 |title=Monetary Policy &#124; Monetary Policy Committee (MPC) &#124; Framework |url=http://www.bankofengland.co.uk/monetarypolicy/framework.htm |url-status=dead |archive-url=https://web.archive.org/web/20100508103201/http://www.bankofengland.co.uk/monetarypolicy/framework.htm |archive-date=8 May 2010 |access-date=2 May 2010 |publisher=Bank of England }}</ref> The Act also provides that the Government has the power to give instructions to the Bank on interest rates for a limited period in extreme circumstances. This power has never been officially used.