The Bank of England (“BoE”) is the United Kingdom’s central bank. Like most other central banks across the globe it carries a wide range of mandated responsibilities, including maintaining financial stability, keeping prices stable and maintaining confidence in the Great Britain pound. Most importantly, though, it oversees monetary policy.
The BoE has existed since 1694, and currently its monetary policy committee consists of nine members; a governor, two deputy governors, two executive directors and four outside experts who meet monthly.
The BoE’s inflation target is 2%, so if prices surpass that level it will look to curb inflation and if prices are below that it will take measures to boost inflation.
Under the leadership of Mervyn King, the BoE is often held up as an example of one of the world’s most effective central banks.