Target Two Point Zero is an interest rate challenge for students in the UK set by the Bank of England and The Times. Students aged 16 to 18 are asked to analyse the economic outlook and recommend what interest rate should be set. The students make a 15-minute presentation and are judged by Bank of England staff, through three rounds with an ultimate winner being selected in a national final.
Contents
The challenge
Target Two Point Zero invites students aged 16 to 18 to take on the role of the Monetary Policy Committee to analyse current economic conditions in the UK and the outlook for inflation. Teams of four students must create a formal presentation that is delivered to a panel of judges from the Bank of England. The presentation must conclude with a recommendation on exactly what interest rate the team would set in order to achieve the UK government's inflation target of 2.0% CPI.
Following the initial presentation, which lasts a maximum of 15 minutes, the judges have the opportunity to ask questions about what has been said. They might ask the students to justify or clarify certain aspects of their interpretation of the economic conditions.
Structure of the competition
The challenge has three identical rounds: regional heats, area finals and the national final. There is a sufficient time lapse between rounds to compel teams to change and update their presentation to take into account of new economic statistics, or the MPC’s own interest rate decisions.