After Britain's exit from the ERM, Lamont had two major tasks: to replace the ERM with a new framework for monetary policy to replace the ERM and to address the sharp increase in government borrowing caused by the recession and the rapid fall in inflation. In a letter to the Chairman of the House of Commons Treasury Select Committee in October 1992, Lamont set out a new basis for the conduct of monetary policy centred on inflation targeting. He set a target range for inflation excluding mortgage interest rate payments of 1–4%, falling into the lower part of the range by the end of the Parliament. In assessing progress toward meeting the inflation target, there was a target for the growth of narrow money (M0) and monitoring ranges for the growth of broad money (M4). Decisions on interest rates would also take account of house and asset price inflation and the exchange rate. Transparency and market credibility would be enhanced by publication of a monthly monetary assessment and the Bank of England was asked to produce a quarterly inflation report. These innovations marked a decisive break with the past and a necessary step toward central bank independence. Inflation targeting was the basis on which the Bank of England was made independent by the Blair government in 1997, the Bank's Monetary Policy Committee being made accountable for achieving the government's inflation target.