Monetary Policy Committee

The European Central Bank is taking part in a hearing of the European Parliament's Committee on Economic and Monetary Affairs, where lawmakers question central bank officials on monetary policy, inflation and eurozone financial stability. Such hearings are a regular part of the ECB's accountability to the Parliament, giving MEPs a chance to scrutinise decisions affecting the euro area economy.

A Bank of England policymaker, identified as Taylor, said inflation is contained and urged caution over further interest rate increases. The comments suggest a more dovish stance within the Bank's rate-setting committee, with markets and borrowers watching closely for signals on the future path of UK monetary policy.

Catherine Mann, an external member of the Bank of England's Monetary Policy Committee, said at a McKinsey panel that persistent above-target inflation poses a problem for central bank credibility. Her remarks underline concern among policymakers that failing to return inflation to target quickly could erode public trust in monetary policy.