Bank of England

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Bank of England

The central bank of the United Kingdom. It is let by a Governor, which is at least nominally a civil service post. The Bank of England prints money for England and Wales (though not for Northern Ireland or Scotland) and acts as a lender of last resort for all banks in the UK. Through its semi-independent Monetary Policy Committee, the Bank of England sets monetary policy for the UK, particularly by attempting to ensure that inflation remains as close as possible to 2%. If the inflation rate is more than 1% in either direction of 2%, the Governor of the Bank of England must write the Chancellor of the Exchequer to explain how he/she will remedy the situation. It was established in 1694 and served as the model for the creation of most modern central banks. See also: Federal Reserve System, European Central Bank.

Bank of England

the CENTRAL BANK of the UK which acts as banker to the government and the BANKING SYSTEM and acts as the authority responsible for implementing MONETARY POLICY. The Bank of England handles the government's financial accounts in conjunction with the TREASURY, taking in receipts from taxation and the sale of government assets, and making disbursements to the various government departments to fund their activities. The Bank acts as the government's broker in its borrowing and lending operations, issuing and dealing in government BONDS and TREASURY BILLS to underpin its year-to-year budgetary position and management of the country's NATIONAL DEBT.

COMMERCIAL BANKS hold accounts with the Bank of England and, in its role as banker to the banking system, the Bank makes it possible for banks to settle their indebtedness with one another by adjusting their accounts as appropriate (see CLEARING HOUSE SYSTEM).

The Bank of England and its satellite, the Royal Mint, are responsible for issuing the country's basic stock of money – LEGAL TENDER consisting of bank notes and coins (see MONEY SUPPLY). The bank occupies a key role in the implementation of monetary policy through controls on the money supply, influencing the level of bank deposits and credit creation by the financial institutions, particularly commercial banks, while the MONETARY POLICY COMMITTEE has the responsibility for setting ‘official’ INTEREST RATES in the UK which in turn determines all other short-term interest rates (BASE RATE, BILL DISCOUNTING INTEREST RATE, INTERBANK CLEARING INTEREST RATE).

The Bank is also responsible for managing the country's EXCHANGE RATE and holding the country's stock of INTERNATIONAL RESERVES to be used in the financing of balance of payments deficits. The Bank of England operates a ‘Foreign Exchange Equalization Account’ which it uses to intervene in the FOREIGN EXCHANGE MARKET, buying and selling currencies to support the exchange rate at a particular level or to ensure that it falls (depreciates) or rises (appreciates) in an ‘orderly’ manner. See LENDER OF LAST RESORT.

Bank of England

the CENTRAL BANK of the UK, which acts as banker to the government and the BANKING SYSTEM and acts as the authority responsible for implementing MONETARY POLICY. The Bank of England handles the government's financial accounts in conjunction with the TREASURY, taking in receipts from taxation and the sale of government assets, and making disbursements to the various government departments to fund their activities. The bank acts as the government's broker in its borrowing and lending operations, issuing and dealing in government BONDS and TREASURY BILLS to underpin its year-to-year budgetary position and management of the country's NATIONAL DEBT.

COMMERCIAL BANKS hold accounts with the Bank of England and, in its role as banker to the banking system, the Bank makes it possible for banks to settle their indebtedness with one another by adjusting their accounts as appropriate (see CLEARING HOUSE SYSTEM).

The Bank of England and its satellite, the Royal Mint, are responsible for issuing the country's basic stock of money - LEGAL TENDER, consisting of bank notes and coins (see MONEY SUPPLY). The Bank occupies a key role in the implementation of monetary policy through controls on the money supply, influencing the level of bank deposits and credit creation by the financial institutions, particularly commercial banks (see BANK DEPOSIT CREATION), while the MONETARY POLICY COMMITTEE has the responsibility for setting ‘official’ INTEREST RATES in the UK, which in turn determines all other short-term interest rates (BASE RATE, BILL DISCOUNTING INTEREST RATE, INTERBANK CLEARING INTEREST RATE).

The Bank is also responsible for managing the country's EXCHANGE RATE and holding the country's stock of INTERNATIONAL RESERVES to be used in the financing of balance-of-payments deficits. The Bank of England operates a ‘Foreign Exchange Equalization Account’ that it uses to intervene in the FOREIGN EXCHANGE MARKET, buying and selling currencies to support the exchange rate at a particular level or to ensure that it falls (depreciates) or rises (appreciates) in an ‘orderly’ manner. See LENDER OF LAST RESORT.

References in periodicals archive ?
The Bank of England has been put at the centre of a new regulatory system and been given significant new powers and responsibilities.
Despite recent data from the US suggesting a slowdown in job creation, we expect to see the Bank of England raise its interests rates after the Federal Reserve does the same - most likely in quarter one or quarter two of 2016.
The Bank of England publication that verifies the above- mentioned money creation is at http://www.
Robin Ashby, who formed the Northern Rock Small Shareholders Group in Newcastle in the wake of the crisis in 2007, said the documents "revealed the staggering ineptitude both of the Bank of England and Gordon Brown and Ed Balls [a Brown adviser at the time], who actually cut the Bank of England loose when they came into power".
The Bank of England survey found business demand for loans rose for a second straight quarter, with lenders saying firms wanted loans to fund mergers and acquisitions and for investment in property.
He will be fondly remembered by current and former colleagues at the Bank of England.
London: The Bank of England was on Thursday set to maintain its record-low interest rate and level of cash stimulus pumping around an improving British economy, analyst said.
In its 1950 report the Bank of England said: "At the outbreak of war and for some time afterwards the Czech gold incident still rankled.
Summary: Bank of Canada chief Mark Carney has been named as the next governor of the Bank of England.
Mark Carney, currently serving as Governor of the Bank of Canada, having taken up his office on 1 February 2008, has been named successor to Sir Mervyn King as Governor of the Bank of England, the UK central bank.
Summary: LONDON -- Inflation in Britain fell sharply in December, official figures showed Tuesday, laying the ground for more monetary stimulus from the Bank of England.
Sir Mervyn's tenure at the helm of the Bank of England has coincided with the worst economic crisis since the Depression of the 1930s.