About Bank of England (BOE)
Bank rate 0.75%
Governor Mark Carney
Head quarters Thread needle Street, London
What is Bank of England?
Bank of England is a Central Bank of the United Kingdom which was formed in 1694. Bank of England is responsible for setting the Bank Rates and also to maintain the Monetary Policy. Bank of England does not hold accounts for the public or issue loans to the public. BOE is usually priced in and overshadowed by a Monetary Policy Summary, which focuses more on the future. BOE Interest Rates is the rate at which the bank lends to financial institutions over night. Short term Interest Rates are a very important factor in currency valuation.
Why do Central Banks hike the Interest Rates?
When the economy is growing at a rate that may lead to hyperinflation (monetary inflation occurring at a very high rate)
Why do Central Banks cut the Interest Rates?
The Central bank may cut the Interest Rates to encourage people to borrow more money at a lower rate, be it for new houses or businesses. The aim is to also make saving money less attractive as the returns are lower when the rates are cut.
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Below is BOE’s annual schedule.