The Bank of England is the UK’s central bank.
The Bank of England is responsible for
- Monetary Stability: The Bank is responsible for setting monetary policy to control inflation. This includes adjusting the base rate, which influences lending rates throughout the economy, including those for mortgages and loans. Changes to the base rate will have a significant effect on the interest rate you will be able to get on a mortgage.
- Financial Stability: It works to maintain the overall stability of the financial system in the UK. This involves monitoring risks and weaknesses in the system and taking action where necessary to reinforce it
- Issuing Currency: The Bank of England is the sole entity with the right to issue banknotes in England and Wales.
- Banker to the Government: It acts as the government’s banker, managing the UK’s foreign exchange and gold reserves and the government’s stock register.
- Regulation and Supervision of Financial Institutions: The Bank of England also has regulatory oversight of financial institutions in the UK, ensuring they operate in a safe and fair manner.
Its mission is to promote the good of the people of the United Kingdom by maintaining monetary and financial stability.