Core Purposes
In pursuing its goal of maintaining a stable and efficient monetary and financial framework as its contribution to a healthy economy, the Bank has two core purposes; achieving them depends on the work of the Bank as whole. This part of the website describes and explains each core purpose and some of the work that is undertaken to achieve them. This material adds to that provided on the 'About the Bank' main page. Other parts of the website provide more information about each of the Bank's activities.
The Bank's core purposes are determined by Court as part of its role in setting the Bank's objectives and strategy. The statement below was endorsed by Court in May 2009.
The Bank of England exists to ensure monetary stability and to contribute to financial stability.
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 delegated to the Monetary Policy
Committee, explaining those decisions transparently and implementing them
effectively in the money markets.
More
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 strengthening infrastructure, and by
financial and other operations, at home and abroad, including, in exceptional circumstances, by acting as the lender of last resort.
More
In pursuit of both purposes the Bank is open in communicating its views and analysis and works closely with others, including:
- Other central banks and international organisations to improve the international monetary and financial system.
- HM Treasury and the Financial Services Authority, under the terms of the Memorandum of Understanding, to pursue financial stability.
The Bank will also play its part in promoting an open and internationally competitive financial centre in the United Kingdom, using its expertise to help make the United Kingdom financial system more efficient, where such efforts would be in the public interest and provided that they do not conflict with its primary responsibilities or those of other agencies.
Key Resources
| Your Money - What the Bank Does booklet Download PDF - Print version (352k) Download PDF - Online version (505k) |
|
| Memorandum of Understanding between HM Treasury, the Bank of England and the Financial Services Authority Download PDF (50k) |
Related Links
- Inflation Report
The Report sets out the detailed economic analysis and inflation projections - Financial Stability Report
Biannual publication aimed at promoting public understanding of financial stability issues. - The Court of Directors
The function of Court is to manage the Bank's affairs other than the formulation of monetary policy
External Links
- Financial
Services Authority
An independent body that regulates the financial services industry in the UK. - HM
Treasury
The United Kingdom's economics and finance ministry. - Royal
Mint
Responsible for the provision of the United Kingdom coinage.
