Bank of England

The United Kingdom’s central bank, founded in 1694. It issues banknotes in England and Wales, sets monetary policy, and supports financial stability.

Monetary Policy Committee: The Bank of England committee responsible for setting the United Kingdom’s monetary policy. It sets Bank Rate and uses other tools to pursue the inflation target.
William Paterson: A Scottish merchant and financial promoter who helped establish the Bank of England. He proposed the institution’s founding scheme in the 1690s.
Montagu Norman: Governor of the Bank of England from 1920 to 1944, a period of major monetary and political upheaval. His leadership shaped the Bank’s interwar policies and international influence.
HM Treasury: The United Kingdom’s finance ministry, responsible for public spending, taxation, and economic policy. The Treasury sets fiscal policy, while the Bank independently sets monetary policy.
British pound: The United Kingdom’s official currency, also known as sterling. The Bank issues sterling banknotes in England and Wales and influences the pound through policy.
Bank Rate: The interest rate the Bank of England pays on reserves held by commercial banks. Changes to this rate influence borrowing costs and spending across the economy.
Tonnage Act 1694: An English statute that authorized a loan to the Crown and established the Bank of England. It gave the Bank its original legal basis in return for financing the government.
Eddie George: Governor of the Bank of England from 1993 to 2003, including its transition to monetary-policy independence. He led the Bank through the 1997 transfer of rate-setting authority.
European Central Bank: The central bank responsible for monetary policy in the euro area. Its multinational mandate contrasts with the Bank’s responsibility for the United Kingdom.
Inflation targeting: A monetary policy framework in which a central bank aims to keep inflation near a stated target. The government’s inflation target guides the Bank’s rate-setting decisions.

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