quarterly bulletin. It is a publication which paves way for broader research and analysis that helps in a great deal in taking policy decisions.

It has got twelve agencies working under it. They are duty bound in providing analytical information to the MPC so that the committee can understand the true picture of prevailing economy and take necessary action in maintaining the inflation to the point of 2%. The division also undertakes special studies regarding the International economic conditions.

B. MARKET

The market division of the monetary policy committee takes care of open market operations and sterling money market. It manages Bank of England’s balance sheet, and foreign exchange reserves. It greatly helps the MPC to bring the financial stability by providing valuable analysis and information’s about the market.

The market division consists of two divisions. One is risk management divisions and another is financial services authority.

Risk Management Division

This division is responsible for the management of risk that arises in financial operations. It provides the strategic support in reducing the risks of the markets that is sterling money market, capital market and foreign exchange market.

Financial Services Authority

One of the markets that are being controlled by the monetary policy committee is the Gilt market. The participant of this market is controlled by Financial Services Authority that regulates this market. It was set up during 1997 and became full fledged in the years 99/2000. This FSA frames rules for the chanelized transactions and trading in gilts and gilt derivatives.

C. Financial Stability:

Financial stability is the core objective of monetary policy committee. To achieve this goal, it works in co-ordination with two divisions that is HM treasury and Financial Services Authority under the memorandum of understanding. The financial stability objective has been given a statutory status by the Act of Bank of England 2009.