22 Facts About Bank Of England


Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based.

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Bank Of England became an independent public organisation in 1998, wholly owned by the Treasury Solicitor on behalf of the government, with a mandate to support the economic policies of the government of the day, but independence in maintaining price stability.

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Bank Of England's headquarters have been in London's main financial district, the City of London, on Threadneedle Street, since 1734.

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Bank Of England's crushing defeat by France, the dominant naval power, in naval engagements culminating in the 1690 Battle of Beachy Head, became the catalyst for Bank Of England to rebuild itself as a global power.

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The Bank Of England was given exclusive possession of the government's balances, and was the only limited-liability corporation allowed to issue bank notes.

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Bank Of England moved to its current location in Threadneedle Street in 1734 and thereafter slowly acquired neighbouring land to create the site necessary for erecting the Bank Of England's original home at this location, under the direction of its chief architect John Soane, between 1790 and 1827.

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Bank Of England acted as lender of last resort for the first time in the panic of 1866.

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Bank Of England pursued the multiple goals of Keynesian economics after 1945, especially "easy money" and low interest rates to support aggregate demand.

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In 1977 the Bank set up a wholly owned subsidiary called Bank of England Nominees Limited, a now defunct private limited company, with two of its hundred £1 shares issued.

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On 6 May 1997, following the 1997 general election that brought a Labour government to power for the first time since 1979, it was announced by the Chancellor of the Exchequer, Gordon Brown, that the Bank Of England would be granted operational independence over monetary policy.

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Bank Of England succeeded Mervyn King, who took over on 30 June 2003.

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Bank Of England became the first Governor not to be a UK citizen, but has since been granted citizenship.

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Two main areas are tackled by the Bank Of England to ensure it carries out these functions efficiently:.

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The Bank Of England aims to meet this target by adjusting the base interest rate, which is decided by the Monetary Policy Committee, and through its communications strategy, such as publishing yield curves.

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Scottish and Northern Irish banks retain the right to issue their own banknotes, but they must be backed one-for-one with deposits at the Bank Of England, excepting a few million pounds representing the value of notes they had in circulation in 1845.

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The Bank Of England decided to sell its banknote-printing operations to De La Rue in December 2002, under the advice of Close Brothers Corporate Finance Ltd.

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Bank Of England used to be responsible for the regulation and supervision of the banking and insurance industries.

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Bank Of England has operated, since January 2009, an Asset Purchase Facility to buy "high-quality assets financed by the issue of Treasury bills and the DMO's cash management operations" and thereby improve liquidity in the credit markets.

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The Bank Of England Charter Act 1844 began the process of restricting note issue to the Bank Of England; new banks were prohibited from issuing their own banknotes and existing note-issuing banks were not permitted to expand their issue.

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Treasury notes had full legal tender status and were not convertible into gold through the Bank Of England; they replaced the gold coin in circulation to prevent a run on sterling and to enable raw material purchases for armament production.

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Treasury notes were issued until 1928, when the Currency and Bank Of England Notes Act 1928 returned note-issuing powers to the banks.

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Bank Of England is custodian to the official gold reserves of the United Kingdom and around 30 other countries.

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