Bank of England Monetary Policy

The Bank of England manages the country’s monetary policy mainly by setting interest rates and controlling the money supply to keep inflation stable. When inflation rises, they may raise interest rates to make borrowing more expensive, slowing spending and price increases. Conversely, if economic growth slows, they might lower rates to encourage borrowing and investment. Their goal is to support a healthy economy—keeping prices stable, employment high, and financial stability. This careful adjustment of monetary policy influences how much consumers and businesses pay for loans and savings, impacting overall economic activity.