Bank of England

Bank of England logo

Bank-of-England

Running Cash Note - Bank of England Museum - Joy of Museums

Charles Montagu, 1st Earl of Halifax by Sir Godfrey Kneller, Bt

Bank of England Charter sealing 1694

Running Cash Note - Bank of England Museum - Joy of Museums - 2

The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world, after the Sveriges Riksbank. The Bank of England is responsible for issuing banknotes in England and Wales, managing the country's foreign exchange and gold reserves, and setting monetary policy.

History

The Bank of England was founded by Royal Charter on 27 July 1694, following a proposal by the Scottish entrepreneur William Paterson. The bank was established to act as the government's banker and debt-manager, a role it continues to fulfill today. Initially, it was a private institution, but it was nationalized in 1946.

Functions

The Bank of England has several key functions:

• Monetary Policy: The Bank's Monetary Policy Committee (MPC) is responsible for setting the interest rate to meet the government's inflation target.
• Financial Stability: The Bank works to maintain the stability of the financial system as a whole.
• Banknotes: The Bank has the sole right to issue banknotes in England and Wales.
• Government's Banker: The Bank acts as the banker to the UK Government.

Structure

The Bank of England is governed by a board of directors, known as the Court of Directors. The Court is responsible for setting the Bank's strategy and budget, and it oversees the work of the MPC.

Location

The Bank of England is located in the City of London, the historic financial district of London. The building, known as the Bank of England Building, is situated on Threadneedle Street.

Governors

The current Governor of the Bank of England is Andrew Bailey, who took office in March 2020. The Governor is appointed for an eight-year term and is responsible for the overall management of the Bank.

See also

• Monetary Policy Committee
• Pound sterling
• City of London
• Royal Charter
• William Paterson (banker)
• Central bank

Related pages

• Monetary Policy Committee
• Pound sterling
• City of London
• Royal Charter
• William Paterson (banker)
• Central bank