Monetary policy is the manipulation of and the money supply in order to achieve the government's macroeconomic objectives. Since 1997, when the Bank of England was made , monetary policy has been set by the M.P.C , who have been set an target. The target is i 1% on the C.P. . Interest rates are the price of and affect the economy through their impact on the level of aggregate . Choose words from: Index, independent, demand, interest rates, inflation, Committee, 2%, credit