What is the aim of the Challenge?
Your team has to assess the state of the economy and the outlook for inflation and decide what level of interest rate you would set to achieve the Government’s inflation target of 2.0%. The Challenge – What the Challenge involves – the task. What am I expected to do? You must decide whether or not to change the interest rate from the rate set by the Monetary Policy Committee (MPC) and if so whether to increase it or decrease it, and by how much. There is no right or wrong answer. It is a matter of judgement. Having made your decision, you must prepare and give a short presentation to a panel of judges arguing the case for your decision. The judges will then ask you some questions. The Challenge – What the Challenge involves – the task. What MPC rate should we take as the basis for our decision? Your recommendation to put rates up, or down, or keep them the same is in relation to the rate set by the MPC at the meeting prior to the team making its presentation to the judges.
