MPs will be scrutinising the role of the Bank of England’s Monetary Policy Committee and whether it has the right tools to stimulate the economy and control inflation.

The Treasury select committee will be looking at the powers of the MPC as part of a new inquiry into jobs, growth, and productivity after coronavirus.

Cross-party MPs will examine how the government can reduce economic scarring and job losses after the pandemic and what has caused the UK’s productivity growth to be persistently weak.

It will also examine macroeconomic policy, looking at whether the Bank of England’s inflation target is fit for purpose, if the rate-setting MPC has effective tools to stimulate the economy when interest rates are low, and whether a return of inflation is a risk to the economic recovery.

The deadline for submitting written evidence is 5pm Monday May 17.

The first evidence sessions will take place before the summer recess, with a report expected later this year.

TSC chair Mel Stride says: “As the UK begins to emerge from the pandemic, jobs, growth and productivity will be key priorities for the Treasury Committee.

“What role can the government play in raising economic growth? How can the government reduce economic scarring effects from the pandemic? Does the government have a coherent strategy to promote long-term productivity growth?

“These are some of the questions that we’ll seek to answer throughout this inquiry, which will conclude with a series of recommendations for the government and associated public bodies.”