The Bank of England is the central bank of the United Kingdom, sometimes known as "The Old Lady of Threadneedle Street" or "The Old Lady". It performs all the functions of a central bank -- to maintain price stability, and subject to that, to support the economic policy of Her Majesty's Government (Bank of England Act 1998) in order to promote economic growth.
In pursuing its goal of maintaining a stable and efficient financial framework, the Bank has two core purposes;
Core Purpose 1 - Monetary Stability. Monetary stability means stable prices and confidence in the currency. Stable prices are defined by the Government's inflation target, which the Bank seeks to meet through the decisions on interest rates taken by the Monetary Policy Committee.
Core Purpose 2 - Financial Stability. Financial stability entails detecting and reducing threats to the financial system as a whole. Such threats are detected through the Bank’s surveillance and market intelligence functions. They are reduced by financial and other operations, at home and abroad, including, in exceptional circumstances, by acting as the lender of last resort.
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